Ujjivan Small Finance Bank's action plan to improve asset quality yielding results; Stock gains 2%

PAR reduced to 21.7% as of August 21 (from 30.8% in Jun’21); Rs725+ crore reduction through collections, the company said.

Sep 27, 2021 09:09 IST India Infoline News Service

Ujjivan Financial Services
Ujjivan Small Finance Bank Limited updated the exchanges on Friday on August business. The Bank said that disbursements are picking up with the easing of restrictions/ lockdowns. The Bank implemented an action plan prioritizing PAR reduction; NPA recovery; legal recourse in the secured book.

PAR reduced to 21.7% as of August 21 (from 30.8% on June 21); Rs725+ crore reduction through collections.

At around 9.28 AM, Ujjivan Financial Services Ltd was trading at Rs154.60 per piece up by Rs3.05 or 2.01% from its previous closing of Rs151.55 per piece on the BSE.
It also said that there was a consistent improvement in collections; restructured book showing good collection efficiency. The Bank strengthened the collection team with focus on potential and existing NPA customers.

The Bank is re-building volumes with focus on good customers. The business update comes after the announcement of the exit of its Managing Director and CEO Nitin Chugh last month.

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