Ujjivan SFB spurts 5 per cent after Q2 business update; Sunil Singhanias fund allocated 1.9 crore shares in QIP!

As the bank has crossed the landmark of Rs 20,000 crore with both the advances and deposits, showing strong growth, the icing on the cake is Abakkus Growth Fund-2,

Ujjivan Small Finance Bank (SFB) Limited is a small finance bank licensed under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance banks in India.  

The stock is seen flourishing with gains as it skyrocketed over 5 per cent on Thursday along with decent volumes.   

The small finance bank has come out with its business highlights for the quarter that ended September 30, 2022. Here are some of its important key takeaways:  

• The bank crossed the Rs 20,000 crore milestones with both advances and deposits, showing robust growth. 

• Advances are up by 44 per cent/8 per cent YoY/ QoQ to Rs 20,938 crore on the back of sustained growth in disbursement, which grew 56 per cent/12 per cent YoY/ QoQ to Rs 4,867 crore. 

• Deposits advanced 45 per cent/11 per cent YoY/QoQ to Rs 20,389 crore driven by strong momentum in retail deposits i.e. up by 71 per cent/15 per cent YoY/QoQ. 

• Its asset quality continues to improve with PAR/GNPA further declining to 6.1 per cent/4.4 per cent from 7.9 per cent/5.9 per cent, respectively QoQ.   

• Collection efficiency maintained at 99 per cent+ with restructured and NPA book, showing healthy collections. The bank continues to focus on stressed buckets and reduced incremental overdues.  

As the bank has crossed the landmark of Rs 20,000 crore with both the advances and deposits, showing strong growth, the icing on the cake is Abakkus Growth Fund-2, which has been allocated nearly 8.42 per cent of the equity shares offered in qualified institutional placement (QIP) i.e. 1,90,47,619 equity shares.

Ace investor Sunil Singhania is at the helm of Abakkus Growth Fund. Interestingly, the QIP was done at Rs 21.93, and currently, it's quoting a little over Rs 24. 

MD and CEO of Ujjivan Small Finance Bank, Ittira Davis said, “Our focus this year is to consolidate our business and make them profitable, invest in new avenues of growth. Our economy is recovering. The credit demand has picked up. This is evident from our performance over the last three quarters. We look to grow our gross advances by around 30 per cent this year with deposits growing faster than advances. We are monitoring our costs very closely and aim to bring in efficiency through process improvement and productivity enhancement. We look to hold our cost-to-income ratio at the current levels.”   

What do you think? Can this small finance bank offer a bundle of surprises to its shareholders and earn a tag of small size but big bang in performance? Let us know in the comments section!