Ujjivan Small Finance Bank, which commenced its operations in Telangana, expects to close the previously announced reverse merger of the holding company of Ujjivan with the Bank by July.
“We have already sought approvals from RBI and stock exchanges and are waiting for approvals after which the remaining regulatory process for the reverse merger will be completed,” Ittira Davis, MD and CEO of Ujjivan Small Finance Bank said. .
Ujjivan Small Finance bank has witnessed a business turnaround with its profitable last two quarters. In the quarter that ended December 2022, the total deposits of Ujjivan SFB increased by 49 per cent year on year driven by strong momentum in the retail deposit, which grew 72 per cent . It recorded a 33 per cent increase in the gross loan book, with disbursement sustaining above ₹4,800 crore.
“For full FY23, we are expecting about 49-50 per cent and 30 per cent growth in deposits and advances respectively,’‘ the Managing Director said.
With the opening of the branches in Telangana it will have have 598 branches in 25 states serving over 71 lakh customers and will close the current financial year with a total network of 625 branches, Davis said.
“Our entry into Telangana is part of our strategy to build a balanced portfolio of secured and unsecured loans while leveraging our branch network to mobilise retail deposits. We are dedicated to driving financial inclusion in the country through our ongoing expansion efforts and expanding our branch network,’‘ he added. In the next financial year, the bank is planning to commence operations in Andhra Pradesh as well.
Carol Furtado, Chief Business Officer, Ujjivan Small Finance Bank, said, “We are thrilled to be expanding our operations to Telangana, a region with strong growth potential for the micro and small enterprises industry and affordable housing. We believe our comprehensive range of banking products and services, including competitive interest rates on savings and deposits, will help us serve the aspirational residents of Telangana.