About
Ujjivan Small Finance Bank Ltd
Ujjivan Small Finance Bank Limited is a mass market focused small finance bank in India, catering to financially unserved and underserved segments and committed to building financial inclusion in the country.The companies Promoter, Ujjivan Financial Services Limited (UFSL) commenced operations as an NBFC in 2005 with the mission to provide a full range of financial services to the economically active poor' who were not adequately served by financial institutions. On October 7, 2015, UFSL received RBI In-Principle Approval to set up a Small Finance Bank(SFB), following which it incorporated Ujjivan Small Finance Bank Limited as a wholly-owned subsidiary. UFSL, subsequent to obtaining RBI Final Approval on November 11, 2016 to establish and carry on business as an SFB, transferred its business undertaking comprising of its lending and financing business to our Bank, which commenced its operations from February 1, 2017.
Ujjivan Small Finance Bank has a diversified portfolio with branches spread across 24 states and union territories and a customer base of 4.72 million as of June 30, 2019. Apart from the network of branches, ATMs and Automated Cash Recyclers, the bank has a phone banking unit that services customers in eleven languages, a mobile banking application that is accessible in five languages as well as internet banking facility for individual and corporate customers.
The Bank operationalised 101 Banking Outlets (BO) including 24 in Unbanked Rural Centres (URCs) during FY 2019-20. As of March 31, 2020, the Bank operated a strong network of 575 Banking Outlets (BOs) and 475 ATMs.
The Bank came up with an IPO of 202,702,702 Equity Shares of Face Value of Rs 10 each for cash at a price of Rs 37 per equity share (including a share premium of Rs 27 per equity share) aggregating to Rs 7,459.46 Million. Pursuant to the IPO, the Equity Shares of the Bank got listed on BSE and NSE on December 12, 2019. The Bank, as part of its IPO, had undertaken PreIPO Placement of 71,428,570 Equity Shares by way of preferential issue on private placement basis at a price of Rs 35 per equity shares for cash consideration.
As of March 31, 2021, the Bank operated a strong network of 575 Banking Outlets (BOs) and 491 ATMs. During FY 2020-21, new products launched included Differential saving account rates; Point of Sale (PoS) machine; Cash Management Services (CMS) solutions; Online fee collection solutions and QR code solution for merchants. The Bank introduced new health insurance offerings, scaled up employee IRDA certification efforts, improved internal processes to remove operational bottlenecks, adopted digital initiatives for customer on-boarding and servicing, and focused on quality customer acquisition across business verticals.
The Bank operated a network of 492 Automated Teller Machines (ATMs) as at March 31, 2022. New products like term loan, overdraft and cash credit facility, were launched under the Credit Guarantee Trust for MSE scheme (CGTMSE); and cash credit/OD facilities were introduced for FIG customers.
During 2023, the Bank expanded its branch network by introducing 54 new branches, bringing the total to 629 branches. The Bank operated a network of 517 Automated Teller Machines (ATMs) as at March 31, 2023. It commenced operations in Telangana. It opened 9 new branches in Uttar Pradesh and Gujarat; it added regional processing hubs across the country to enhance the regional presence and cater to major markets such as Ahmedabad, Coimbatore, Patna, and Jaipur. Additionally, it launched Asset Centres dedicated to
serving MSME customers, with the first centre opening in Mysuru.
Ujjivan Small Finance Bank Ltd
Chairman Speech
Emerging Stronger. Determined to do Better.
Dear Shareholders,
We, along with other SFBs, started the banking journey five years back.
These five years have been a mixed bag with several achievements and learnings. All of us
have been able to create a deoosit book to match asset side, invest in IT and robust
banking platform, create new highs in financial inclusion. However, costand profitability
has been a challenge due to the transformation as well as external shocks like
demonetisation and COVID.
Financial year 2021-22 was marked by challenges with dynamic changes in
the Board, Management, Work Force, Market Value etc. Flowever, we ended the year on a high
with a remarkable turnaround and record-breaking business numbers in second half of the
fiscal. I would take this opportunity to thank all the shareholders who trusted us through
these challenging times. Our Board has witnessed considerable changes during the year, and
Mr. Ittira Davis, a seasoned banker took charge as the MD & CEO of the Bank effective
from January 14,2022, with the prior approval of the RBI. Further, after the induction of
the new Board members during the year, we are glad that the present Board of the Bank
comprises of experienced professionals totally committed to help achieve our mission to be
the best digital mass market Bank.
In addition, to further strengthen our Board, the Bank recently has
appointed Ms. Anita Ramachandran, a veteran FIR expert as an Independent Director. This
brings the total number of female Board Members to 30% of the total.
The Bank started its journey towards the turnaround with three-fold
objectives of rebuilding business volumes, improving asset quality and reducing credit
cost and attracting good talent to further stabilise our team. In order to achieve these
objectives, the Bank formulated two "100-Day Plans" in the third and the fourth
quarter and the combined efforts of the Board, the Management and our entire workforce
made the turnaround possible. The Bank recorded a pre-provisioning operating profit of Rs
217 Crores in the last quarter. Further, with COVID fear receding and the economy
gradually normalising, we're seeing a good credit demand. This is visible from all-time
highest gross disbursements and growth in advances in the second half of the last fiscal.
Overall, I am confident that FY 2022-23 will be a strong comeback year for Ujjivan where
new milestones will be achieved which will create a solid platform for next growth cycle.
The Board will provide all support and guidance to the management in
this next interesting phase of the cycle to help achieve the required stability and
consistent desired profitability.
Further on the talent front, despite the high attrition that we faced
in the beginning of the year, we have been progressing well on attracting good talent at
all levels. Our Management team has been strengthened by joining of senior leaders with
vast experience and the attrition at the other levels has also come under control with the
help of various FIR initiatives.
I would also like to highlight certain other important initiatives
taken by the Bank. In order to ensure safety of our customers as well, after extending the
vaccination drive to cover 99%+ of our employees and families, we launched an initiative
to help our customers and families get vaccinated. In the FY 2021-22 the Bank's CSR
activities were also focused on COVID relief and healthcare. In addition to the same, our
community development programme, Chote Kadam in partnership with Parinaam Foundation
carried out 5 civil projects in Karnataka, Goa, Rajasthan and Gujarat for the benefit of
the underprivileged communities. We have partnered with skill development NGOs like
Cheshire Disability Trust,
Divya Nur Foundation and Savera society towards the training and
placement of youths and women in Maharashtra, Jharkand, Orissa and Bihar. We also adopted
an education centre in Chennai which is run for children of Persons with
Intellectual and Developmental Disability (PwlDD).
During the year, the Bank initiated necessary steps for the reverse
merger of Ujjivan Financial Services Limited, the Holding Company (UFSL) with the Bank in
accordance with applicable laws and guidelines. As mandated by SEBI, the Bank is in
process to increase its public shareholding to at least 25% byway of Qualified
Institutions Placement, after which the merger application will be submitted with the
stock exchanges and other regulators. Further, the Bank is also exploring a debt issue
(sub-ordinated debt eligible for Tier II Capital) since augmenting the capital is
necessary for the Bank to grow in line with its budgeted growth rate in the current
financial year.
FY 2022-23,1 believe, looks encouraging for the industry, and Ujjivan
especially, to reap the benefits of the hard work put in over the last five years. Economy
is gradually recovering from the COVID impact. Our target customer segment is resilient
and is bouncing back with strong credit demand. We are confident that the momentum built
in the second half of FY 2021- 22, would continue in the current fiscal and would enable
Ujjivan to attain newer heights in terms of growth, size, deposit mobilisation and
profitability.
We are optimistic that the Bank has the potential to grow
exponentially, and we are hopeful that the long-standing shareholders will appreciate the
overall performance and be rewarded in the years to come.
| Mr B.A Prabhakar |
| Chairman |
  Â
Ujjivan Small Finance Bank Ltd
Company History
Ujjivan Small Finance Bank Limited is a mass market focused small finance bank in India, catering to financially unserved and underserved segments and committed to building financial inclusion in the country.The companies Promoter, Ujjivan Financial Services Limited (UFSL) commenced operations as an NBFC in 2005 with the mission to provide a full range of financial services to the economically active poor' who were not adequately served by financial institutions. On October 7, 2015, UFSL received RBI In-Principle Approval to set up a Small Finance Bank(SFB), following which it incorporated Ujjivan Small Finance Bank Limited as a wholly-owned subsidiary. UFSL, subsequent to obtaining RBI Final Approval on November 11, 2016 to establish and carry on business as an SFB, transferred its business undertaking comprising of its lending and financing business to our Bank, which commenced its operations from February 1, 2017.
Ujjivan Small Finance Bank has a diversified portfolio with branches spread across 24 states and union territories and a customer base of 4.72 million as of June 30, 2019. Apart from the network of branches, ATMs and Automated Cash Recyclers, the bank has a phone banking unit that services customers in eleven languages, a mobile banking application that is accessible in five languages as well as internet banking facility for individual and corporate customers.
The Bank operationalised 101 Banking Outlets (BO) including 24 in Unbanked Rural Centres (URCs) during FY 2019-20. As of March 31, 2020, the Bank operated a strong network of 575 Banking Outlets (BOs) and 475 ATMs.
The Bank came up with an IPO of 202,702,702 Equity Shares of Face Value of Rs 10 each for cash at a price of Rs 37 per equity share (including a share premium of Rs 27 per equity share) aggregating to Rs 7,459.46 Million. Pursuant to the IPO, the Equity Shares of the Bank got listed on BSE and NSE on December 12, 2019. The Bank, as part of its IPO, had undertaken PreIPO Placement of 71,428,570 Equity Shares by way of preferential issue on private placement basis at a price of Rs 35 per equity shares for cash consideration.
As of March 31, 2021, the Bank operated a strong network of 575 Banking Outlets (BOs) and 491 ATMs. During FY 2020-21, new products launched included Differential saving account rates; Point of Sale (PoS) machine; Cash Management Services (CMS) solutions; Online fee collection solutions and QR code solution for merchants. The Bank introduced new health insurance offerings, scaled up employee IRDA certification efforts, improved internal processes to remove operational bottlenecks, adopted digital initiatives for customer on-boarding and servicing, and focused on quality customer acquisition across business verticals.
The Bank operated a network of 492 Automated Teller Machines (ATMs) as at March 31, 2022. New products like term loan, overdraft and cash credit facility, were launched under the Credit Guarantee Trust for MSE scheme (CGTMSE); and cash credit/OD facilities were introduced for FIG customers.
During 2023, the Bank expanded its branch network by introducing 54 new branches, bringing the total to 629 branches. The Bank operated a network of 517 Automated Teller Machines (ATMs) as at March 31, 2023. It commenced operations in Telangana. It opened 9 new branches in Uttar Pradesh and Gujarat; it added regional processing hubs across the country to enhance the regional presence and cater to major markets such as Ahmedabad, Coimbatore, Patna, and Jaipur. Additionally, it launched Asset Centres dedicated to
serving MSME customers, with the first centre opening in Mysuru.