India's Ujjivan Small Finance extends gains; hopes RBI license decision comes through

Ujjivan Small Finance Bank

09/09/2025 06:52

** Shares of Ujjivan Small Finance UJJI.NS rise 6.4% to 47 rupees, extending gains from Monday

** Stock up 12% in two sessions

**  Lender targets gross loan book of 1 trillion rupees ($11.36 billion) by FY30; hopes RBI will decide on its application for a universal banking license by December

** ICICI Securities ("Buy", PT: 55 rupees) says universal bank license would be a structural milestone for Ujjivan, easing capital norms and exposure caps while enhancing brand value and lowering funding costs

** Emkay ("Buy", PT: 60 rupees) trims earnings by 5-9% on headwinds for margin and operating expenditure

** Says, it expects Return on Assets to improve to 1.7-2% by FY27–28 from 1.3% in FY26, led by microfinance portfolio recovery

** Antique ("Buy", PT: 73 rupees) likes Ujjivan SFB's strategy to grow its secured portfolio and build a sustainable model, but notes execution remains key as these segments are still nascent

** Stock up 38% YTD

 (Reporting by Urvi Dugar)

 ((UrviManoj.Dugar@thomsonreuters.com))