Ujjivan Small Finance Bank Limited (USFB), incorporated in 2017, is a mass market focused Small Finance Bank (SFB). USFB Bank is promoted by Ujjivan Financial Services Limited (UFSL) which commenced operations as an NBFC in 2005. Ujjivan Small Finance Bank serves over 49 lakh customers through 552 branches spread across 232 districts in 24 states & union territories of India. Its Gross Loan Book stands at Rs.12,864cr and the deposit base at Rs.10,130cr as of September 30, 2019.
Valuation and OutlookThe experience of UFSL as an erstwhile microfinance institution, coupled with the ability to address mass market customers will further aid USFB to be among the leading SFBs in India. At the upper price band of Rs 37, USFB is available at P/BV of 2.5x FY19, which is at a significant discount to its peers and we have a ‘SUBSCRIBE’ rating with a long-term perspective.
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