Beginning operations on February 1, 2017, Bangalore-based Ujjivan Small Finance Bank Limited is a small financial institution in India. Ujjivan Financial Services own the bank to the tune of 80%. ThisbBank was granted Scheduled Bank status by the Reserve Bank of India in August 2017 and is authorised to conduct small finance bank activity under Section 22 of the Banking Regulation Act, 1949.
History Behind Ujjivan Small Finance Bank
The Reserve Bank of India granted Ujjivan Financial Services‘ request to establish a small financing bank in principle on October 7, 2015. The business had 464 branches serving 24 states and more than 2.6 million clients. Due to its small finance bank status, Ujjivan has been able to increase the number of loan products it offers while also accepting deposits in place of borrowing money from other financial organisations. On November 11, 2016, Ujjivan was granted the final license by the Reserve Bank of India to launch a microfinance institution. By February 2018, they served more than 3.7 million clients in 209 Indian districts, 24 states, and union territories.
The Securities and Exchange Board of India granted Ujjivan Small Finance Bank permission in October 2019 to raise 1,200 crores (US$162 million) through an IPO (IPO). By the final day of the auction on December 4, 2019, the initial public offering had been 166 times oversubscribed.
Services Offered by the Bank
Ujjivan SFB has a variety of goods and services, including savings and current accounts, fixed and recurring deposits, micro-loans, home loans, and small business loans. Customers can also use mobile and internet banking services. Customers can withdraw money from the Ujjivan small finance bank ATM using biometric authentication. Through Aadhaar-enabled KYC, consumers can open their bank account on a handheld device in 5–7 minutes. The bank has launched senior Citizen Product and Tax Saver Fixed Deposit.
Detailed Market Share
Founded in 2016, Ujjivan Small Finance Bank is a banking organisation with a market cap of Rs. 5687.61 billion.
For the quarter that ended on December 31, 2022, the Ujjivan Small Finance Bank share a Standalone Total Income of Rs. 1220.54 crores. An increase of 7.08 percent from the previous quarters. Total Ujjivan Small Finance Bank share price is Rs. 1139.83 crore and a rise of 52.82% from the same quarter last year’s Total Income of Rs. 798.68 crores. In the most recent quarter, the bank posted a net profit after tax of Rs. 293.19 Crore.
For the fiscal year ending March 31, 2022, the key Products/Revenue Segments for Ujjivan Small Finance Bank Ltd. are Interest & Discount on Advances & Bills, Income from Investment, Interest on Balances with RBI, and Other Inter-Bank Funds.
A range of fixed deposit programmes is offered by Ujjivan Small Finance Bank, with durations ranging from one week to ten years and competitive interest rates between 3.05 percent and 6.75 percent annually. The bank offers an additional Ujjivan Small Finance Bank FD rates 0.50 percent interest rate to seniors.
The Ujjivan Small Finance Bank management is optimistic about further business traction and has overseen strong loan growth driven by a renewed focus across all segments. The brokerage anticipates cost-to-income and credit costs to normalise due to continued elevated spending and the largely absorbed super-normal recoveries from the written-off pool.