Business updates help allay the fear of a potential business slowdown after the following rising inflation and increase interest rates to counter it.
bank’s total credit enhancement was substantially buoyed by the expansion of 39% of advances under microbanking segment 13,364 crore, while both the affordable housing and venture loan books showed similar growth print, albeit on a lower basis. Its affordable housing loans stood at Rs 2,905 crore while enterprise loans increased to Rs 1,767 crore.
Continued traction in collection efficiency helped the portfolio shrink to 7.9% at the end of June, from 9.6% three months before that. The bank’s gross non-performing assets declined from 7.1% to 5.9% during the same period.
Ujjivan’s total deposits grew 35% year-on-year to Rs 18,433 crore, supported by a focus on granular retail deposits, which saw a 65% year-on-year jump to Rs 10,761 crore.
AU Small Finance Bank on Monday reported 42% loan growth. The growth numbers of both the banks indicate a resilient consumption pattern and renewal of income generating activities by the economically weaker population.