Shares of Ujjivan Small Finance Bank tanked as much as 16 percent on Tuesday after the lender's poor quarterly numbers disappointed the Street.

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However, the stock recovered a large part of its intraday losses. At 12:48 pm, shares of the small finance lender were 4.1 down percent at Rs 20.9 on the BSE.

Ujjivan Small Finance Bank reported a net loss of Rs 273.8 crore during the quarter ended September, as compared to a net profit of Rs 96 crore in the corresponding quarter last year.

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Net interest income fell 17 percent on-year to Rs 391.36 crore. The lender's net interest margin - a key measure of profitability for banks - was at 8.1 percent in the second quarter of the current financial year, as against 10.2 percent in the year-ago period.

Apart from revenue from wholesale banking, all other segment revenues fell on a Year-on-Year (YoY) basis.

The bank's gross advances came in at Rs 14,514 crore, up 5 percent YoY and 3 percent Quarter-on-Quarter (QoQ). Disbursements stood at Rs 3,122 crore, up 114 percent YoY and 138 percent QoQ.

Deposits rose 31 percent on year to Rs 14,090 crore.

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Meanwhile, deterioration in asset quality on a QoQ basis weighed heavily on the stock.

Ujjivan Small Finance Bank's gross non-performing assets ratio was at 11.8 percent in Q2, as against 9.79 percent in Q1. The net non-performing assets ratio was at 3.3 percent in Q2 as compared to 2.7 percent a year ago.

"We believe, subject to a potential third wave of Covid, our GNPA has peaked out and will gradually reduce hereon. We remain confident that the Bank would tide over the challenges posed by the current business environment and would emerge strong," said Martin PS, Officer on Special Duty, Ujjivan Small Finance Bank.

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