Why are investors selling shares from Ujjivan Small Finance Bank

Ujjivan Small Finance Bank on Thursday (24 October) released its Q2 FY25 results. The company said its profit declined 23% to ₹233 crore in the September quarter from ₹328 crore a year ago. The bank's shares crashed amid this report. Ujjivan Small Finance Bank shares fell nearly 6% on the BSE and hit an intraday low of ₹36.43.

Know other details of Ujjivan Small Finance Bank

Net interest income (NII) grew 9.5% to ₹944 crore in the September quarter from ₹862 crore on a year-on-year basis. The bank's net interest margin (NIM) remained healthy at 9.2%. The bank's gross loan book grew 14% y-o-y to ₹30,344 crore led by growth in secured loan books, from 31.3% in June 2024 to 34.9% by September 2024. Asset quality remained stable, with gross non-performing assets (GNPA) at 2.5% and net NPA at 0.6%. Deposits grew 17% y-o-y to ₹34,070 crore, with current account savings account (CASA) deposits growing 26% y-o-y.

Ujjivan Small Finance Bank Shares Performance

The bank's shares were trading 6% lower at ₹36.43 on the BSE. The stock has fallen 32% in the last six months and 35% so far this year YTD. The stock has fallen 30% in a year. It has fallen by 5% in five days and 15% in a month. Let us tell you that prominent investor Dolly Khanna has indicated to exit this poor-performing stock in her portfolio after keeping it for only one quarter. Khanna bought a stake in the stock of Ujjivan Small Finance Bank in the June 2024 quarter and her name is missing from the list of major shareholders for this quarter.