Ujjivan Small Finance Bank hits new 52-Week high after RBI's action

Shares of Ujjivan Small Finance Bank ended 6 percent higher at Rs 36.95 on May 30, after the bank said RBI was withdrawing nominee director from the board. The stock hit a 52 week high of ₹36.95 per share on the NSE.

P.N. Raghunath, then General Manager at RBI's Bengaluru Regional Office, had been appointed as Additional Director on the bank's board. However, in a recent letter dated May 29, 2023, the RBI informed Ujjivan Small Finance Bank  that Mr. P.N. Raghunath would cease to be an Additional Director with immediate effect.

Ujjivan Small Finance Bank has been on an upward trajectory since the start of the new financial year 2023-24. Over the past week, the bank's share price has risen from approximately Rs 28 to Rs 36 per share, delivering a remarkable return of around 30 percent to its shareholders. Year-to-date, the small finance bank's shares have provided 25 percent return to its investors.

In a recent earnings report, Ujjivan Small Finance Bank announced a significant increase in its net profit for the March quarter. The bank's net profit jumped by more than two-fold to Rs 309.50 crore, attributed to higher core income and a write-back in provisions. For the fiscal year 2022-23, the bank reported a net profit of Rs 1,099 crore, a notable improvement from the loss of Rs 414 crore recorded in the previous year.