Ujjivan Small Finance Bank may be exploring options to expand its business with an eye on segments like gold loans. This comes at a time when the lenders are shoring up capital to cope with likely stress that may arise due to COVID.
Talking to CNBC-TV18, Nitin Chugh, Managing Director & CEO of Ujjivan Small Finance Bank, said, “In June, we finished with almost 47 percent collection efficiency and in the month of July, we took it up to about 60-61 percent and it is improving. It is improving in August as well. There have been some minor setbacks in terms of floods in a few parts of the country as we are going through all of that right now, but in general, things are improving.”
Talking about Moratorium, he said, “The moratorium, as of the end of July, was 40 percent... As the collection efficiency improves in the month of August, I think we will have much lesser people in the moratorium.”
“Our cost of funds has been coming down sequentially for the last few quarters. In the last quarter, we were able to reduce by 20 basis points. I can talk about the June numbers, so we finished at 7.6 percent which was the aggregated cost of funds. On an incremental basis, I think it is another 15-20 basis points lower than that," added Chugh.