Ujjivan bank charts growth
Ujjivan Small Finance Bank is targeting a Rs 2500-crore deposit base during the current financial year and hopes to come up with new retail offerings.
- Published 29.04.17
Calcutta, April 28: Ujjivan Small Finance Bank is targeting a Rs 2500-crore deposit base during the current financial year and hopes to come up with new retail offerings.
A wholly owned subsidiary of Bangalore-based Ujjivan Financial Services Ltd, the bank, which started operations in February, has garnered deposits worth Rs 106.44 crore by March-end, while its gross loan book stood at Rs 6,379.49 crore.
According to officials, the bulk of the amount collected is institutional deposits and this trend will continue for some time as the bank builds up its branch network.
"We have converted 15 branches by March, and plan to add 15 branches by early May. We further plan to convert 171 branches this year and 53 unbanked rural centres will be opened," said Samit Ghosh, managing director and CEO of Ujjivan Small Finance Bank.
"Our focus this year will be on successful roll-out of banking services in chosen branches, build retail and bulk deposit business to reduce our finance cost," he added.
In Bengal, Ujjivan plans to convert its 126 microfinance outlets into bank branches over the next three years.
The Ujjivan bank today rolled out its operations in the state with the launch of six branches. As far as Ujjivan's gross loan portfolio is concerned, Bengal stands second after Karnataka.
On the retail side, the bank is exploring new products in the form of remittances, loan against salary and sale of insurance products through bancassurance. These offerings are likely to be introduced in the second half of the current fiscal.
According to Ghosh, Ujjivan's fourth-quarter performance was hit by the trailing effect of demonetisation.
"The portfolio quality took a hit while incremental business was affected. Disbursements only started picking up in March," Ghosh said.