 "Ujjivan Small Fin up 9% on selling stressed loan portfolio worth Rs 270 cr")
Ujjivan Small Finance shares jumped 8.7 per cent on BSE in Thursday's trade and logged an intraday high of Rs 36.5 per share. The stock climbed after the small finance bank completed the sale of a stressed loan portfolio worth Rs 270.35 crore.
Around 1:37 PM, Ujjivan share price was up 6.76 per cent at Rs 35.83 per share on BSE. In comparison, the BSE Sensex was down 1.15 per cent at 79,311.44. The market capitalisation of the company stood at Rs 6,931.41 crore. The 52-week high of the stock stood at Rs 62.99 per share and the 52-week low was at Rs 32.01 per share.
"We hereby inform that today (November 27, 2024), the bank has completed the sale of the stressed loan portfolio including the written loans pool with an outstanding value of Rs 270.35 crore as of September 30, 2024, to an ARC pursuant to Swiss Challenge Method, for a consideration amounting to Rs 40.55 crore," the filing read.
A stress loan portfolio refers to a collection of loans held by a financial institution (like a bank or a non-banking financial company) that is experiencing financial difficulties or signs of distress.
These loans typically show signs of being at risk of default or repayment problems. The stress in a loan portfolio can result from factors such as economic downturns, industry-specific challenges, or the financial instability of borrowers.
Ujjivan Small Finance Bank is a small finance bank in India that primarily focuses on providing financial services to the underserved and unbanked population, especially in rural and semi-urban areas. It was established in 2017, following the conversion of Ujjivan Financial Services Ltd., a microfinance institution, into a small finance bank.
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The bank is headquartered in Bengaluru, Karnataka, and offers a wide range of banking products and services, including savings accounts, fixed deposits, personal loans, microloans, business loans, and microinsurance.
In the past one year, Ujjivan Small Finance shares have lost 37 per cent against Sensex's rise of 21 per cent.