MICROCAPITAL BRIEF: Ujjivan Small Finance Bank, Provider of Microfinance in India, Files for IPO

India’s Ujjivan Small Finance Bank (SFB) recently filed paperwork with the Securities and Exchange Board of India in preparation for an initial public offering (IPO). Ujjivan SFB seeks to raise INR 12 billion (USD 167 million), valuing the bank at INR 20 billion (USD 280 million). A “small finance bank” is a type of institution in India that provides basic banking services such as deposits and loans for traditionally underserved populations.

Based in Bangalore, Ujjivan SFB serves 4.7 million customers in 24 Indian states via 474 branches as well as the internet and a mobile banking app. Its target population is the “economically active poor who were not adequately served by financial institutions.” As of June 2019, it reports total assets of INR 143 billion (USD 1.99 billion), a gross loan portfolio of INR 118 billion (USD 1.64 billion), total deposits of INR 79.5 billion (USD 1.11 billion) and annual return on assets of 2.7 percent.

Ujjivan SFB is the primary subsidiary of Ujjivan Financial Services, which was founded in 2004. As of June 2019, Ujjivan Financial Services reports total assets of INR 149 billion (USD 2.07 billion), annual income of INR 6.89 billion (USD 96 million) and annual expenses of INR 5.62 billion (USD 78 million).

By Eugene DeCosse, Research Associate

Sources and Additional Resources

Livemint article
https://www.livemint.com/market/ipo/ujjivan-small-finance-bank-files-draft-papers-for-rs-1-200-crore-ipo-1565969436696.html

Ujjivan SFB homepage
https://www.ujjivansfb.in

Ujjivan SFB financial information
https://www.ujjivansfb.in/Financial-Information.html

Ujjivan Financial Services homepage
https://www.ujjivan.com

Ujjivan Financial Services financial information
https://www.ujjivan.com/html/financials_results.php

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