Ujjivan Small Finance Bank (SFB) has successfully offloaded its stressed loan portfolio, including written-off loans amounting to ₹364.51 crore, to an asset reconstruction company (ARC) for a consideration of ₹34.26 crore.
In a regulatory filing, the bank announced that the transaction was completed on February 28, 2025, following approval from its authorised board committee on February 21, 2025. This move is part of Ujjivan SFB’s ongoing efforts to strengthen its balance sheet by reducing its non-performing assets (NPAs).
Despite the sale, the bank reported a rise in gross NPAs, which increased to 2.68% in Q3 FY25, up from 2.52% in the previous quarter, while net NPAs remained stable at 0.56%.
Ujjivan SFB’s total loan book reached ₹30,466 crore, marking a 9.8% year-on-year growth. Notably, its secured loan portfolio has expanded significantly, now comprising 39.3% of the total loan book, compared to 28.3% a year ago.
According to Trendlyne data, analysts have set an average target price of ₹47 for Ujjivan SFB, indicating a potential 47% upside from current levels. The stock has a ‘Buy’ consensus recommendation from 15 analysts.
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On Friday, Ujjivan SFB’s stock closed at ₹32.1 on the BSE, down 1.5%, amid a 1.9% drop in the Sensex. Over the past year, the stock has declined 37%, but it has delivered an 87% gain over the last three years. The bank’s market capitalization currently stands at ₹6,218 crore.
