Ujjivan Small Finance Bank on November 15 said its board approved a proposal for sale of non-performing asset (NPA) and written-off loans to an asset reconstruction company (ARC).
The bank, said in a stock exchange filing, that it will sell NPA of Rs 207.98 crore and write off Rs 62.36 crore from microbanking pool size of Rs 270.35 crore.
The lender said it carries an overall provision of 85.61% on the above pool.
"We will separately intimate as and when the aforesaid proposed deal is completed," said Ujjivan Small Finance Bank.
The lender's decision comes at a time when it said in recent past that it would apply for the universal banking licence no later than March 2025.
Managing Director Sanjeev Nautiyal recently told The Economic Times about the lender's universal banking licence plans.
"We are working on a plan and within this financial year, we see ourselves in a very good position to make an application to the Reserve Bank of India," he said.
On November 14, Ujjivan SFB's shares on BSE closed 0.38% lower at Rs 34 apiece. The market capitalisation of the bank's stock is Rs 6,570 crore.
Last month, Ujjivan Small Finance Bank reported a 29% decline in net profit to Rs 233 crore for the quarter ended September 2024.
The lender earned a net profit of Rs 328 crore in the year-ago period.
However, total income rose to Rs 1,820 crore in the quarter under review from Rs 1,580 crore in the same period a year ago, Ujjivan Small Finance Bank said in a regulatory filing.
Net interest income of the bank improved to Rs 1,613 crore in the July-September quarter from Rs 1,391 crore in the September 2023 quarter.
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