Ujjivan Financial Services Limited announced on Tuesday that the Reserve Bank of India, vide official Gazette Notification on August 25, 2017, granted the scheduled bank status to Ujjivan Small Finance Bank Limited.
Ujjivan Financial Services started small finance bank from February 2017 and transferred the loan outstanding to Ujjivan Small Finance Bank.
Reacting positively to the news, investors are picking up Ujjivan Financial Services shares this morning. The stock rose to Rs 346.75 on the National Stock Exchange (Rs 346 on BSE) and is currently up more than 5% at Rs 342.50. The counter on NSE has clocked a volume of about 2.34 million shares so far in the session. On BSE, the Ujjivan Financial Services counter has clocked a volume of nearly 2.6 lakh shares so far this morning, nearly twice the average daily volume the counter had witnessed in the past couple of weeks.
On BSE, a block deal of about 1.67 lakh shares took place this morning, at Rs 342 per share. On NSE, nearly 2.16 lakh shares were traded in a large deal, at Rs 344 a share.
Ujjivan Financial Services hit a 52-week low of Rs 285 earlier this month, with weak first quarter results weighing on the stock.
The company reported consolidated net loss of Rs 75 crore for the quarter ended June 2017. Non repayment of loans in the microfinance sector contributed to the weak results, the company had said.
The company expects collections to be quite healthy in the later part of the second quarter and sees a loan book growth of 18 - 20% in financial year 2017-18. The lender expects margin to expand significantly thanks to business growth and lower cost of funds.
