Ujjivan Small Fin Bank shares fall nearly 2% as board offloads bad loans worth ₹365 crore; check full details

The bank board approved the plan last Friday, February 21.

The bad loans were from the bank's microfinance portfolio. Out of this, ₹294.51 crore was classified as non-performing assets, and the remaining ₹70 crore was written off.

The bank said it carries an overall provision of 66.51% on the above pool.

At 9:30 AM, shares of the Ujjivan Small Finance Bank was trading at ₹31.79 per share on National Stock Exchange, tanking 1.73%. It had touched its 52-week low of ₹30.88 on January 28, 2025. The scrip closed at ₹31.97 apiece, losing 1.17% on the 50-share index.

“We will separately intimate as and when the aforesaid proposed deal is completed,” the bank said in an exchange filing on Friday post stock market closure.

The small finance bank’s asset quality worsened in the October-December quarter of the fiscal year 2025, with gross NPAs rising to 2.68% of gross advances, compared to 2.18% in Q3FY24. Its net NPAs also increased to 0.56% from 0.17% a year earlier.

Its provisions excluding tax and contingencies grew to ₹223 crore, compared to ₹63 crore in the same quarter last year.

During the quarter, the small finance bank reported a 64% year-on-year (YoY) decline in net profit, which stood at ₹103 crore for the third quarter ending December 2024 (Q3FY25), compared to ₹300 crore in the same period last year. The drop was attributed to an increase in provisions for bad loans.

The bank’s total income, however, rose to ₹1,763 crore in Q3FY25, up from ₹1,655 crore in Q3FY24. The capital adequacy ratio of the bank stood at 23.90% as of December 2024, slightly down from 24.37% in the previous year.