Ujjivan Financial Services stock rises after unit included in second schedule of RBI Act 1934

 BT Online        Last Updated: August 30, 2017  | 14:36 IST
Ujjivan Financial Services stock rise after unit gets the second schedule of the RBI Act 1934

The shares of microfinance lender Ujjivan Financial Services rose on Wednesday after the firm said its subsidiary Ujjivan Small Finance Bank has been included in the second schedule of the Reserve Bank of India Act 1934. The 'scheduled bank' status opens new avenues of deposits for the bank.

At 01:54 pm, the stock was trading 6 percent or 19.50 points higher at 344 level on the BSE.

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The stock rose as much as 6.4 percent to Rs 346.75, their highest since July 14

The stock is on track for a fifth straight session of gains.

During the last one year, the stock is down 18.88 percent on the BSE.  

The stock has gained 7.58 percent on the BSE.

The firm reported a loss of Rs 75 crore

On August 3, the company reported a net loss of Rs 75 crore during the first quarter FY18 against a profit of Rs 17.37 crore during the same period last year. The financial services firm reported losses due to poor recovery of loans following demonetisation, and its transition from a microfinance institution to a small finance bank.

The non-banking finance company reported gross non-performing loans of 6.2% as a percentage of the loan book in the quarter ending June from 3.7% in the quarter ending March.

The firm is engaged in the micro finance lending business. Its products and services include Microfinance, Micro and Small Enterprise Business (MSE) Finance, Agriculture and Animal Husbandry Finance, and Housing Finance. Its products are classified under two categories: Group Loans and Individual Loans. Its products are further sub-divided into agricultural, education, home improvement, home purchase and livestock loans

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