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Ujjivan Small Finance Bank (USFB) is readying plans for an initial public offering and is also exploring other options to meet the RBI norms for listing by January 2020.
Ittira Davis, MD and CEO, Ujjivan Financial Services, said the board has approved a listing proposal for the small finance bank.
“USFB is required to be listed by January 31, 2020. Under the prevailing circumstances, the board of USFB in their meeting held on July 30, has approved a proposal for an IPO of its equity shares, subject to receipt of requisite regulatory approvals and prevailing market conditions,” he said.
Ujjivan Financial Services (UFS) is the holding company and promoter of its 100 per cent subsidiary Ujjivan Small Finance Bank.
Speaking to BusinessLine , Davis said they are likely to file the DRHP this month and would consider a 10 per cent listing.
It will also await RBI norms for on-tap licences to small finance banks to explore if any relaxation is possible. “The guidelines are expected this month,” he noted.
Under RBI norms, SFBs should be listed within three years of launch of operations and the promoter shareholding should be lowered to 40 per cent in five years.
Meanwhile, Ujjivan Small Finance Bank reported a near 105 per cent increase in net profit for the first quarter of the fiscal to ₹ 94.4 crore, against ₹46.1 crore in the same period last fiscal.
Its net interest income grew 43.8 per cent to ₹352.5 crore in the quarter ended June 30, 2019. The net interest margin was slightly lower at 10.5 per cent in the first quarter of the fiscal from 10.8 per cent a year ago.
Asset quality was stable and the gross non performing assets stood at 0.8 per cent of gross advances as on June 30, 2019 compared to 2.7 per cent a year ago while net NPAs remained flat at 0.3 per cent of net advances.
Meanwhile, the holding company UFS has reported a net profit of ₹83 crore during the quarter, up by nearly 80 per cent from ₹46.3 crore in the same period a year ago. Total income grew by 51 per cent to ₹689.40 crore in the first quarter.
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