Ujjivan Small Finance Bank stock performance: Ujjivan Small Finance Bank’s shares hit a 52-week high at Rs 59.60, witnessing a 43% surge in trading volume, indicating high liquidity for substantial trades.
Chennai/Mumbai, 04 October(City Times):Ujjivan Small Finance Bank stock performance: Are you keeping an eye on the stock market? If so, you might have noticed that Ujjivan Small Finance Bank shares recently hit a 52-week high. In this article, we’ll delve into the details of this stock’s performance, the factors contributing to its rise, and the exciting developments on the horizon.
Ujjivan Small Finance Bank Stock Performance is Impressive
The stock market is always a hot topic, and recently, Ujjivan Small Finance Bank shares made headlines by reaching a 52-week high of Rs 59.60. For investors, this is undoubtedly an exciting development. To put this into perspective, the shares had a 52-week low of Rs 21.70, highlighting the significant growth they’ve experienced.
Understanding the Current Scenario after Ujjivan Small Finance Bank Stock Performance
As of the time of writing, the shares were trading at Rs 56.80. This represented a slight decrease of 2.20 points or 3.73 percent from the previous day’s closing price. While this might seem like a drop, it’s essential to remember that fluctuations are typical in the stock market.
Increased Investor Interest in Ujjivan Small Finance Bank stock
One noteworthy aspect of this stock’s recent performance is the surge in investor participation. During the trading session on October 3, there was a delivery volume of 2.03 crore shares. This marked a substantial 43 percent increase compared to the 5-day average delivery volume.
Moreover, the stock remains sufficiently liquid for trade sizes of up to Rs 7.28 crore, with trading at 2 percent of the 5-day average traded value. This liquidity is a crucial factor for investors.
Ujjivan Small Finance Bank stock performance: Exciting Developments on the Horizon
Apart from its impressive stock performance, Ujjivan Small Finance Bank is making strategic moves that could further impact its standing in the market. The bank is currently in the process of completing a reverse merger with its holding company, Ujjivan Financial Services (UFSL), within the next 3-4 months.
Ujjivan Small Finance Bank stock performance: The Ujjivan SFB Reverse Merger
The share-exchange ratio for the Ujjivan Small Finance Bank reverse merger has been set at 116:10. This means that for every 10 equity shares of Ujjivan Financial Services, Ujjivan Small Finance Bank will issue 116 equity shares. Such mergers often have far-reaching implications for stock performance.
Ujjivan Small Finance Bank stock performance: Strategic Partnership with SMC Global Securities Limited
Additionally, Ujjivan Small Finance Bank has entered into a strategic partnership with SMC Global Securities Limited. This partnership aims to provide online trading services to the bank’s customers, offering a seamless and convenient trading experience.
The collaboration covers a range of services, including Savings, Demat, and Trading accounts. SMC Global will manage relationships related to Trading and Demat Accounts for Ujjivan Small Finance Bank customers and provide both full and discount brokerage services. Existing Ujjivan Small Finance Bank customers can also open a Demat Account through the bank’s mobile banking app.
SMC Global to expand its client base significantly,
This partnership positions SMC Global to expand its client base significantly, leveraging Ujjivan Small Finance Bank’s extensive pan-India presence, serving over 76 lakh customers. Shri. Ajay Garg, Director and CEO of SMC Global Securities Ltd., expressed optimism about the collaboration, highlighting its potential to provide swift, secure, and hassle-free trading and investment experiences to the bank’s customers.
In conclusion, Ujjivan Small Finance Bank’s recent stock performance, coupled with its strategic moves, paints an exciting picture for investors. As the bank progresses with its reverse merger and fosters partnerships with established entities like SMC Global Securities Limited, it’s a stock worth keeping an eye on in the dynamic world of finance.
Ujjivan Small Finance Bank and Ujjivan Financial Services Merger: An Investment Puzzle
Ujjivan Small Finance Bank (USFB) and Ujjivan Financial Services (UFS) have both seen their stock prices surge nearly 2.5 times since March. This remarkable growth is occurring in anticipation of their impending merger. According to the swap ratio announced last October, UFS shareholders will receive 11.6 shares of USFB for each share they hold in UFS.
Ujjivan Small Finance Bank stock performance: Understanding the Stock Surge, Analyzing the Discrepancy
Until early September, both stock prices moved in unison, reflecting the upcoming merger. However, in the past month, UFS shares have been increasing at a notably faster rate, creating a gap of around 15-18%. For context, on Tuesday, UFS shares closed at Rs 581, while USFB shares closed at Rs 59. Based on the merger ratio, either UFS should be at Rs 684 or USFB at Rs 50.
This situation seems like an opportunity for UFS shareholders to make a straightforward 18% gain when the merger concludes. However, this apparent arbitrage opportunity has left traders puzzled. Normally, such gaps should quickly close. The lingering gap suggests that some investors are hesitating. Several reasons could explain this phenomenon:
1. Concerns About Merger Timing: There might be apprehension that the merger process could take longer than expected. Even though the merger’s ratio was announced last October, the Extraordinary General Meeting (EGM) for shareholder approval is still a month away. If the delay in finalizing the merger is indeed the concern, the potential 18% return may not seem attractive, as traders could explore other investment avenues with quicker returns.
2. Market Perception of USFB’s Valuation: The future valuation of USFB, as it will be the surviving entity after the merger, significantly influences investor decisions. Depending on how the market views USFB’s value in the coming months, the gap between UFS and USFB shares may either widen or narrow.
In conclusion, the unusual stock price dynamics between UFS and USFB have created an intriguing investment puzzle. Investors are carefully assessing the merger’s progress and how the market evaluates the post-merger entity’s value, keeping in mind the potential gains and timing uncertainties.(Ujjivan Small Finance Bank stock performance: Understanding the Stock Surge)
Ujjivan Small Finance Bank’s Reverse Merger Sparks Investor Interest
Ujjivan Small Finance Bank stock performance: Understanding the stock Rally
Ujjivan Small Finance Bank (USFB) has become the center of attention in the financial world due to its remarkable stock rally, soaring by an impressive 91% year-to-date. This surge has captivated investors, especially following a crucial development last month on September 8th.
Here’s a table summarizing the quarterly financial results of Ujjivan Small Finance Bank (in Rs. Cr.) for the specified quarters:
| QUARTERLY RESULTS (in Rs. Cr.) | JUN ’23 | MAR ’23 | DEC ’22 | SEP ’22 | JUN ’22 |
|---|---|---|---|---|---|
| INTEREST EARNED | |||||
| (a) Int. /Disc. on Adv/Bills | 1,133.30 | 1,037.31 | 956.65 | 895.37 | 818.44 |
| (b) Income on Investment | 146.71 | 134.48 | 113.56 | 86.37 | 76.42 |
| (c) Int. on balances With RBI | 2.75 | 7.12 | 4.41 | 1.86 | 4.67 |
| others | 4.12 | 5.92 | 7.00 | 9.58 | 5.84 |
| Other Income | 177.22 | 179.06 | 138.92 | 146.65 | 95.05 |
| EXPENDITURE | |||||
| Interest Expended | 494.23 | 446.82 | 384.67 | 329.94 | 305.66 |
| Employees Cost | 268.44 | 253.24 | 225.54 | 220.43 | 221.04 |
| Other Expenses | 243.54 | 253.26 | 221.41 | 204.48 | 202.66 |
| Operating Profit before Provisions | 457.89 | 410.57 | 388.92 | 384.98 | 271.06 |
| Provisions And Contingencies | 26.11 | -1.93 | -0.22 | -9.94 | 0.39 |
| P/L Before Tax | 431.78 | 412.50 | 389.14 | 394.92 | 270.67 |
| Tax | 107.71 | 103.00 | 95.95 | 100.63 | 67.73 |
| P/L After Tax from Ordinary Activities | 324.07 | 309.50 | 293.19 | 294.29 | 202.94 |
| Net Profit/(Loss) For the Period | 324.07 | 309.50 | 293.19 | 294.29 | 202.94 |
| Equity Share Capital | 1,954.78 | 1,954.71 | 1,954.50 | 1,954.50 | 1,728.31 |
| c) Capital Adequacy Ratio – Basel -II | 26.69 | 25.81 | 26.02 | 26.70 | 20.03 |
| EPS BEFORE EXTRA ORDINARY | |||||
| Basic EPS | 1.66 | 1.53 | 1.50 | 1.59 | 1.17 |
| Diluted EPS | 1.65 | 1.52 | 1.50 | 1.59 | 1.17 |
| EPS AFTER EXTRA ORDINARY | |||||
| Basic EPS. | 1.66 | 1.53 | 1.50 | 1.59 | 1.17 |
| Diluted EPS. | 1.65 | 1.52 | 1.50 | 1.59 | 1.17 |
| NPA RATIOS : | |||||
| i) Gross NPA | 596.54 | 630.61 | 737.55 | 928.86 | 1,146.71 |
| ii) Net NPA | 12.62 | 9.04 | 9.48 | 7.32 | 17.80 |
| i) % of Gross NPA | 2.62 | 2.88 | 3.64 | 5.06 | 6.51 |
| ii) % of Net NPA | 0.06 | 0.04 | 0.05 | 0.04 | 0.11 |
| Return on Assets % | 0.97 | 0.97 | 1.04 | 1.19 | 0.86 |
A Game-Changing Merger
The rally stems from USFB’s plan for an extraordinary transformation: a reverse merger with its holding company, Ujjivan Financial Services Ltd. Ujjivan Financial Services is a core investment company registered as an NBFC (Non-Banking Financial Company). As the bank’s promoter, it holds a substantial 73.68% of equity shareholding and 100% of preference shareholding.
Upon the completion of this groundbreaking merger, Ujjivan Financial Services’ shareholders will see their shares dissolve into history. The swap ratio dictates that for every 10 shares held in Ujjivan Financial Services, shareholders will receive a generous 116 shares of Ujjivan SFB.
The inception of this merger dates back to October 31, 2021, and it marks a significant milestone in the banking industry.
A Bank with a Noble Mission
Ujjivan Small Finance Bank, registered with the RBI as a small finance bank (SFB), is dedicated to retail banking. Its core mission revolves around serving financially underserved and unserved segments of the population.
Emkay Global’s Perspective
Emkay Global, a prominent brokerage firm, highlights a compelling arbitrage opportunity arising from this merger. Investors can potentially acquire Ujjivan SFB shares at a remarkable 15% discount by investing in the holding company’s shares. Emkay Global also commends Ujjivan SFB’s stellar performance, labeling it as one of the best-performing SFBs and micro-finance players in the market. The bank boasts reasonable valuations, with a price-to-book value of 1.6 times as of September 25.
The brokerage firm maintains a ‘buy’ rating on the stock and has set an optimistic target price of Rs 58.
The unusual stock price dynamics between UFS and USFB have created an intriguing investment puzzle. Investors are carefully assessing the merger’s progress and how the market evaluates the post-merger entity’s value, keeping in mind the potential gains and timing uncertainties.
Surge in Ujjivan Small Finance Bank’s stock is closely tied to its ambitious reverse merger plans with Ujjivan Financial Services Ltd. Investors are eyeing this transformation, recognizing the arbitrage opportunities it presents and the bank’s exceptional performance in the financial sector.
Understanding Ujjivan Small Finance Bank’s Quarterly Performance
Are you interested in the financial performance of Ujjivan Small Finance Bank? In this comprehensive analysis, we will delve into the bank’s quarterly results, key financial indicators, and trends. Let’s break down the numbers and see how Ujjivan Small Finance Bank is faring in the financial landscape.
H2: Overview of Ujjivan Small Finance Bank
Ujjivan Small Finance Bank, a prominent player in the Indian banking sector, has released its quarterly financial results for the last five quarters. These results shed light on the bank’s performance, including interest earned, expenditure, profitability, and more. Let’s explore the key financial highlights:
Quarterly Interest Earned
| QUARTER | Interest on Adv/Bills (Rs. Cr.) | Income on Investment (Rs. Cr.) | Int. on balances With RBI (Rs. Cr.) | Other Income (Rs. Cr.) | Total Interest Earned (Rs. Cr.) |
|---|---|---|---|---|---|
| JUN ’23 | 1,133.30 | 146.71 | 2.75 | 4.12 | 1,287.88 |
| MAR ’23 | 1,037.31 | 134.48 | 7.12 | 5.92 | 1,185.83 |
| DEC ’22 | 956.65 | 113.56 | 4.41 | 7.00 | 1,081.62 |
| SEP ’22 | 895.37 | 86.37 | 1.86 | 9.58 | 993.18 |
| JUN ’22 | 818.44 | 76.42 | 4.67 | 5.84 | 905.37 |
Understanding Interest Earned: Interest earned is a critical indicator of a bank’s performance. It includes interest and discounts on advances and bills, income from investments, interest on balances with the RBI, and other sources of income. Ujjivan Small Finance Bank’s interest earned has shown steady growth over the last five quarters, reaching Rs. 1,287.88 Cr. in June ’23.
Quarterly Expenditure
| QUARTER | Interest Expended (Rs. Cr.) | Employees Cost (Rs. Cr.) | Other Expenses (Rs. Cr.) | Total Expenditure (Rs. Cr.) |
|---|---|---|---|---|
| JUN ’23 | 494.23 | 268.44 | 243.54 | 1,006.21 |
| MAR ’23 | 446.82 | 253.24 | 253.26 | 953.32 |
| DEC ’22 | 384.67 | 225.54 | 221.41 | 831.62 |
| SEP ’22 | 329.94 | 220.43 | 204.48 | 755.85 |
| JUN ’22 | 305.66 | 221.04 | 202.66 | 729.36 |
Understanding Expenditure: Expenditure includes interest expenses, employees’ costs, and other operational expenses. Ujjivan Small Finance Bank’s expenditure has also shown an upward trend, reflecting increased operational costs.
Operating Profit and Provisions
| QUARTER | Operating Profit (Rs. Cr.) | Provisions And Contingencies (Rs. Cr.) |
|---|---|---|
| JUN ’23 | 457.89 | 26.11 |
| MAR ’23 | 410.57 | -1.93 |
| DEC ’22 | 388.92 | -0.22 |
| SEP ’22 | 384.98 | -9.94 |
| JUN ’22 | 271.06 | 0.39 |
Understanding Operating Profit and Provisions: Operating profit is the profit a bank earns from its core banking operations before provisions and contingencies. Provisions represent the amount set aside to cover potential losses. Ujjivan Small Finance Bank has consistently generated positive operating profits, but provisions have varied.
Profitability and Earnings Per Share (EPS)
| QUARTER | P/L Before Tax (Rs. Cr.) | P/L After Tax (Rs. Cr.) | Basic EPS | Diluted EPS |
|---|---|---|---|---|
| JUN ’23 | 431.78 | 324.07 | 1.66 | 1.65 |
| MAR ’23 | 412.50 | 309.50 | 1.53 | 1.52 |
| DEC ’22 | 389.14 | 293.19 | 1.50 | 1.50 |
| SEP ’22 | 394.92 | 294.29 | 1.59 | 1.59 |
| JUN ’22 | 270.67 | 202.94 | 1.17 | 1.17 |
Understanding Profitability and EPS: Profit before tax indicates the bank’s earnings before taxation, while profit after tax represents the earnings after tax deductions. Earnings per share (EPS) is a crucial metric for shareholders, reflecting the bank’s profitability on a per-share basis. Ujjivan Small Finance Bank has seen consistent growth in profitability.
NPA Ratios
| QUARTER | Gross NPA (Rs. Cr.) | Net NPA (Rs. Cr.) | % of Gross NPA | % of Net NPA |
|---|---|---|---|---|
| JUN ’23 | 596.54 | 12.62 | 2.62 | 0.06 |
| MAR ’23 | 630.61 | 9.04 | 2.88 | 0.04 |
| DEC ’22 | 737.55 | 9.48 | 3.64 | 0.05 |
| SEP ’22 | 928.86 | 7.32 | 5.06 | 0.04 |
| JUN ’22 | 1,146.71 | 17.80 | 6.51 | 0.11 |
Understanding NPA Ratios: Non-Performing Assets (NPAs) are loans that have stopped generating interest income due to non-payment. Gross NPA represents the total NPA amount, while Net NPA deducts provisions. The percentage of NPA to total assets provides insights into asset quality. Ujjivan Small Finance Bank has made progress in reducing NPA percentages.
Return on Assets (ROA)
| QUARTER | Return on Assets (%) |
|---|---|
| JUN ’23 | 0.97 |
| MAR ’23 | 0.97 |
| DEC ’22 | 1.04 |
| SEP ’22 | 1.19 |
| JUN ’22 | 0.86 |
Understanding ROA: Return on Assets measures a bank’s efficiency in generating earnings from its assets. Ujjivan Small Finance Bank’s ROA has remained fairly stable, indicating efficient asset utilization.
Shareholding Information
| SHAREHOLDER TYPE | Number of Shares (Crores) | Share Holding (%) |
|---|---|---|
| PUBLIC SHARE HOLDING | — | — |
| PROMOTERS AND PROMOTER GROUP | A) PLEDGED/ENCUMBERED | — |
| – Number of shares (Crores) | — | |
| – Per. of shares (as a % of the total sh. of prom. and promoter group) | — | |
| – Per. of shares (as a % of the total Share Cap. of the company) | — | |
| B) NON-ENCUMBERED | — | |
| – Number of shares (Crores) | — | |
| – Per. of shares (as a % of the total sh. of prom. and promoter group) | — | |
| – Per. of shares (as a % of the total Share Cap. of the company) | — | |
| yrc | — | — |
Understanding Shareholding Information: Shareholding details provide insights into the ownership structure of the bank, including the public shareholding and the involvement of promoters and promoter groups.
H3: Conclusion
In conclusion, Ujjivan Small Finance Bank has demonstrated consistent growth in interest earnings and profitability over the last five quarters. While expenditures have increased, the bank’s ability to generate positive operating profits remains strong. Additionally, the bank has made progress in reducing NPA percentages, reflecting improved asset quality. Shareholding information suggests a complex ownership structure. Investors and stakeholders should continue monitoring the bank’s financial performance for future insights.
