Ujjivan Small Finance Bank's Q3 Profit Plunge Sparks Stock Decline

Ujjivan Small Finance Bank's shares fell over 4% following a significant 64% drop in net profit for Q3 2024, attributed to increased provisions for bad loans. Despite a rise in total and interest income, asset quality worsened with higher NPAs. The bank plans to transition to a universal banking model.

Shares of Ujjivan Small Finance Bank fell more than 4% on Friday after the bank announced a drastic 64% drop in net profit for the third quarter ending December 2024, largely attributed to higher provisions for bad loans.

The stock closed down 4.40% at Rs 33.04 on the BSE, having fallen as much as 6.48% during intra-day trading to Rs 32.32. On the NSE, shares dropped 4.36% to Rs 33.05.

Despite the profit drop, Ujjivan Small Finance Bank reported a rise in total income and interest income, but also a decline in asset quality with rising NPAs. The bank plans to seek Reserve Bank approval for transitioning to a universal bank.

(With inputs from agencies.)