Ujjivan Financial Services extends rally; stock soars over 15% in two days

The stock rallied 9% to Rs 428 in intra-day trade, extending its previous day's 8% surge on the BSE

Ujjivan Financial Services rallied 9% to Rs 428 in intra-day trade, extending its previous day’s 8% surge on the BSE, after Ujjivan Small Finance Bank commenced operations as a small finance bank with effect from Wednesday February 1, 2017.

“Ujjivan Financial Services Private Limited, Bengaluru was one of the 10 applicants which were issued in-principle approval for setting up a small finance bank,” the Reserve Bank of India said in a press release.

The Reserve Bank has issued a licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India, it added.

At 11:13 am; the stock was up 6% at Rs 417 as compared to 0.05% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 4.35 million shares changed hands on the BSE and NSE so far.

Meanwhile, shares of other non-banking finance companies (NBFC) mainly micro finance institutions and gold finance companies were too trading higher on the bourses in otherwise range bound market.

Bharat Financial Inclusion, Manappuram Finance, Equitas Holdings, Mahindra & Mahindra Financial Services, Cholamandalam Investment and Finance Company and Muthoot Finance were up 1% to 4% on the BSE.