Nitin Chugh, MD and CEO of Ujjivan Small Finance Bank, said that there was no impact of what is called the second wave of COVID-19 on the collection efficiency and that in fact, the collections have improved across geographies.

“We are not seeing any changes in the collection efficiency. They have in fact improved in all the states which were lagging behind in the past. Specific to the places which are more impacted with the so called second wave, since the measures have mostly to do with nigh curfews and extended hours of working, they have not yet impacted our field operations or any kind of branch operations either," Chugh said in an interview to CNBC-TV18.

He also said that retail deposits is a thrust area for the company and the momentum will continue going ahead.

“We do have a strong momentum on the retail deposit side and that is something we have been working on methodically for the last four quarters starting this financial year. I don’t see too much of a problem in being able to sustain the momentum. So, retail deposits is going to be a thrust area for us and this is completely in-line with the long term plans that we have where we do need to bring a larger proportion of retail deposits. So, I think next year again, we should be able to sustain the momentum,” said Chugh.

According to him, the December 2020 disbursal momentum has sustained in Q4FY21. He also does not feel the need to make additional COVID-19 provision in Q4.

Chugh said that the capital adequacy ratio is at 27 percent and that they are not looking to raise capital as of now.

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(Edited by : Niral Sharma)