Ujjivan Small Finance Bank Limited based at New Delhi in India. Microfinance lender Ujjivan Financial Services is the holding company of Ujjivan Small Finance Bank which plans to raise Rs 750 crore through the fresh issue. Ujjivan Small Finance Bank offers small size loan products to economically poor women, individual loans to Micro and Small Enterprises (MSEs). The company served 4.72 million customers and run 474 Banking Outlets including 120 Banking Outlets in Unbanked Rural Centers as per the record of June 30, 2019. It offers various digital platforms like internet banking, mobile banking, SMS banking, bill payments, biometric ATMs and RuPay Platinum debit cards.



Issue Details
Objects of the issue 1-Augmenting the Bank’s Tier – 1 capital

2-Meeting the expenses in relation to the Issue

3- Receive the benefits of listing the Equity Shares on the Stock Exchanges



Issue Size 20,38,61,003 share = 750.0 Crs.
Face value Rs10 Per Equity Share
Issue Price Rs 36- Rs 37 Per Equity Share
Bid Lot 400 shares
Listing at  


Issue Opens: 2nd Dec 2019 – 4th Dec. 2019
Minimum Investment Rs. 14800
QIB 75%
HNI 15%
RII 10%


Financial Performance:

Particulars ( In mn) 30-Sep-19 31-Mar-19 31-Mar-18
Total Equity & Liabilities 161078.96 137422.15 94728.73
Total Revenue 14348.57 20375.75 15793.55
Profit After Tax (PAT) 3054.73 2043.91 68.89



Mar-18 Mar-19 Sep-19
Gross NPAs (%) 1.9% 0.9% 0.9%
Net NPAs (%) 0.3% 0.3% 0.3%
Specific provision 112.3% 71.9% 122.9%
Total provisions 112.3% 127.0% 122.9%
Yield 18.0% 17.0% 18.2%
Loan Yield 19.8% 18.7% 19.9%
Cost of Funds 8.3% 8.3% 8.4%
NIM 10.88% 10.93% 10.64%

Source: DRHP, EWAL Research


  1. Experienced of mass market servicing in unserved and underserved segments;
  2. Manages various delivery channels to serve its customers;
  3. Footprints available in pan India;
  4. Technology driven operating model with advanced digital platform;
  5. Strong and flawless risk management framework;
  6. Good track record of financial performance.


  1. The bank significantly depend on micro banking business, particularly group loans, that accounted for 79.22% of loans (including securitization/ IBPC) end September 2019 compared with 97.50% end March 2017.
  2. Micro banking loan portfolio, personal loans, and certain categories of MSE loans are not supported by any collateral.
  3. The bank has a limited operating history as an SFB

Key Highlights:

  • The bank has now changed track, targeting open market customers and also plans to offer business banking services in an effort to raise CASA.
  • The bank remains hopeful of a reverse merger of the holding company with the bank at some point of time in the future. (Subject to the RBI’s approval).

Risk Factors:

  • Lack of a rating methodology to assess borrowers and independent compliance department.
  • Huge proportion of bulk deposits, and concentration of deposits in Top-15-20 depositors.


The bank’s products comprise loans to micro banking customers that include group loans and individual loans, agriculture and allied loans, MSE loans, affordable housing loans, financial institutions group loans, personal loans and vehicle loans.The bank has grown in a sustainable manner since beginning its operations. The gross loan book (including securitization/ IBPC) surged from Rs 6383.98 crore end March 2017 to Rs 11048.59 crore end March 2019 and doubled to Rs 12863.65 crore end September 2019.The bank has stable asset quality with gross NPA ratio at 0.85% net NPA at 0.33% end September 2019. The bank has raised the share of secured advances from 1.83% end March 2017 to 13.59% end March 2019 and 19.39% end September 2019. As we mentioned top of the report the bank has a limited operating history as an SFB and IPO Valuation is also on premium. So, we advised investors to subscribe the issue for only listing.


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