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Ujjivan SFB tanks after CEO Nitin Chugh resigns

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Capital Market
Last Updated : Aug 20 2021 | 12:50 PM IST

Ujjivan Small Finance Bank (Ujjivan SFB) slumped 12.16% to Rs 21.30 after Nitin Chugh resigned from the position of managing director and CEO of the bank.

On the BSE, 8.88 lakh shares of the bank were traded in the counter so far as against an average trading volume of 5.44 lakh shares in the past two weeks.

Shares of the bank's promoter group Ujjivan Financial Services also tumbled 7.92% to Rs 186.65. On the BSE, 1.04 lakh shares of the company were traded in the counter so far as against an average trading volume of 0.34 lakh shares in the past two weeks.

In an exchange filing made on Thursday (19 August 2021), Ujjivan SFB said that it had received a letter dated 18 August 2021 from Nitin Chugh tendering his resignation from the position of managing director and CEO of the bank w.e.f. close of business hours on 30 September 2021.

His tenure as director is co-terminus with his tenure as managing director and CEO of the bank. Therefore, he shall cease to be a director of the bank with effect from the aforesaid date.

Consequently, he shall also cease to be key managerial personnel of the bank in terms of Section 203 of the Companies Act, 2013.

The bank said that Chugh has confirmed in his resignation letter that he is resigning due to personal reasons and there are no material reasons.

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Ujjivan SFB is a mass market focused bank in India, catering to financially unserved and underserved segments.

Ujjivan SFB reported a net loss of Rs 233.48 crore in Q1 FY22 as against a net profit of Rs 54.65 crore in Q1 FY21. Total income declined 7.6% YoY to Rs 716.29 crore during the quarter.

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First Published: Aug 20 2021 | 12:25 PM IST

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