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Ujjivan Small Finance Bank expects loan book growth, RoE in excess of 20% by FY26 - Stock at 52-week high
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Ujjivan Small Finance Bank expects loan book growth, RoE in excess of 20% by FY26 - Stock at 52-week high
Jun 12, 2023 6:32 AM

Ujjivan Small Finance Bank shares registered a new 52-week high of Rs 37.80 on Monday. The stock has gained nearly 150 percent over the last 12 months.

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In an analyst meet held on June 9, the company said that it expects its loan book growth of 25 percent by financial year 2026. Return of Equity (RoE) until the same time period is expected to be 20 percent.

The stock has gained almost 22 percent in one month and is up 41.77 percent so far in the year 2023. The management mentioned that the focus is now on the affordable housing segment going forward, and that it is looking to increase its share in this segment to 40 percent by financial year 2026.

Ujjivan SFB plans to reduce its share in the unsecured lending sector from the existing 72 percent to 60 percent by financial year 2026 and is targeting to hit a Current Account and Savings Account (CASA) ratio of 35 percent, retail deposits share of 70 percent, and a deposits Compound annual growth rate (CAGR) of 30 percent over the next three years.

Earlier this month, Ujjivan Small Finance Bank revised its fixed deposits (FD) interest rates, offering 8.25 percent to regular customers and 8.75 percent to senior citizens on a fixed deposit of 12 months.

Shares of Ujjivan Small Finance Bank ended 1.2 percent higher at Rs 37.35.

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