Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Ujjivan Financial Services clarified to the bourses that there has been no red flags raised by the RBI in respect of USFBs operations as reported in the media. It added that RBI conducts financial inspections for banks annually for ensuring better processes and controls. USFBs performance, governance and operations continue to be robust, it said.
Most of the RBIs observations, pursuant to its annual financial inspection of UFSB as disclosed in the Draft Red Herring Prospectus (DRHP) filed by USFB with Sebi in connection with its proposed IPO, are operational in nature and pertain to the RBI inspection for the financial year 2017-18. UFSB has submitted responses to these observations made by RBI. USFB is regularly updating RBI on the work in progress.
With respect to the fraud management systems, Ujjivan informed that USFB currently has a manual fraud management process which is in the process of being automated. USFB had a multiple product based customer grievance redressal mechanism and has put in place standard operating procedure to achieve centralized monitoring mechanism.
With respect to the rating methodology, the company clarified that USFB had a scorecard based framework in place for rating its borrowers and is working on an automation of rating methodology.
With respect to the tagging of PSL advances, Ujjivan said that most of USFBs loan accounts are currently tagged online. It further added that a small proportion of USFBs agricultural loans had been mis-categorized as PSL advances based on erroneous land holding data. These cases had been re-classified as non PSL advances.
In reference to the high proportion of bulk deposits and concentration of deposits in its top 20 depositors, UFSB said that the concentration of top 20 deposits has substantially decreased from 73.59% (as on 31 March 2018) to 30.14% as on 30 September 2019.
On the BSE, 55,018 shares were traded in the counter so far compared with average daily volumes of 2.21 lakh shares in the past two weeks. The stock hit a high of Rs 275.9 and a low of Rs 266.45 so far during the day.
On a consolidated basis, the NBFCs net profit rose 116.6% to Rs 63.23 crore on a 54.7% increase in total income to Rs 710.04 crore in Q2 September 2019 over Q2 September 2018.
Ujjivan Financial Services is a non-banking financial services company.
Powered by Capital Market - Live News