Ujjivan Small Finance Bank surges 9% as board offloads bad loans worth ₹270 crore

Ujjivan SFB finalised the deal for ₹45.55 crore.

The share closed in the green at ₹35.94, up by 7.64% on the bourse on Thursday.

The Bengaluru-based small finance bank completed the sale of a stressed loan pool which included written-of loan pools, with an outstanding value of ₹270.35 crore as of September 30, 2024, it said in a regulatory filing dated Wednesday.

The deal is “pursuant to Swiss Challenge Method”, the bank said.

On November 15, the authorised Board Committee of the Bank approved the proposal for the sale of these NPAs and written-off loans to the ARC.

Stock performance

The midcap private bank hit its 52-week low at ₹32.01 on the NSE last Friday, November 22.

While the stock tanked 32.25% over the past six months and fell 2.02% in the last month, it pared the loss with substantial gains worth 11.51% over the past five days.

As of November 28, the small finance bank has a total market capitalisation of ₹6,952.69 crore, according to the National Stock Exchange.

About the bank

Ujjivan Small Finance Bank Limited is a midcap private-sector bank pandering to financially unserved and under-served segments in India.

Ujjivan Financial Services Limited was established as a non-bank financial company (NBFC) in 2005 with the mission of offering financial services to the ‘economically active poor’ who were not adequately served by financial institutions.

In October 2015, Ujjivan Financial Services Ltd received approval from the RBI to start the small finance bank.

Ujjivan Small Finance Bank commenced its banking operations on February 1, 2017.