USFB’s (Ujjivan Small Finance Bank’s) promoter UFSL (Ujjivan Financial Services Ltd) commenced operations as an NBFC in 2005 with a focus on MFI-JLG loans (joint liability group). In Oct 2015, UFSL received RBI In-Principle Approval to establish an SFB, following which it incorporated USFB as a subsidiary. UFSL, thereafter transferred its business to USFB, which commenced its operations from Feb, 2017. As on Sep 2019, USFB had advances of Rs. 12,780 Cr and a network of 552 branches. The top 4 products of the bank comprise of Group loans (MFI, 70% mix), Micro individual (8% mix), Affordable Housing (9% mix) and MSE (7% mix).
Valuation and OutlookUSFB is being offered at trailing P/ABV of 2.1x on post diluted basis leaving GOOD scope for appreciation and thus we recommend subscribing to the issue.
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