The share of Ujjivan Small Finance Bank jumped over 2% to Rs 34.50 on November 28, after the Board of the company approved to sell Non Performing Assets and written off Loans aggregating to Rs 270.35 crore at their book value to a Registered ARC for Rs 40.55 crore, arrived through Swiss Challenge Method.
The Swiss Challenge Method allows private entities to bid for government contracts. This move comes as the microfinance sector faces challenges, with the bank revising its earlier growth guidance downward.
Key Financial Metrics (Q2 FY25)
- Net profit declined 23% YoY.
- Net interest income (NII) rose 9.5% YoY.
- Stable asset quality: GNPA at 2.5% and NNPA at 0.6%.
However, Ujjivan SFB retracted its earlier loan book growth guidance of 20% due to uncertainties in the microfinance segment. Shares of the bank have fallen 41% YTD, underperforming the broader market.
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