Ujjivan Small Finance Bank's Valuation Upgrade Signals Strong Financial Resilience and Growth Potential

Jul 08 2025 08:42 AM IST
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Ujjivan Small Finance Bank has recently adjusted its valuation grade, now categorized as very attractive. Key financial metrics include a PE ratio of 12.53, a price-to-book value of 1.52, and a dividend yield of 3.19%. The bank maintains a net NPA ratio of 2.54%, reflecting effective risk management.
Ujjivan Small Finance Bank has recently undergone an adjustment in its evaluation, reflecting a shift in its valuation grade. The bank's valuation is now categorized as very attractive, indicating a favorable assessment of its financial metrics.

Key financial indicators for Ujjivan Small Finance Bank include a price-to-earnings (PE) ratio of 12.53 and a price-to-book value of 1.52, which suggest a competitive positioning within the midcap banking sector. The bank also boasts a dividend yield of 3.19%, appealing to income-focused investors. Additionally, the return on equity (ROE) stands at 12.11%, while the return on assets (ROA) is reported at 1.52%, highlighting the bank's operational efficiency.

Despite facing challenges in recent quarters, including a significant decline in profits, Ujjivan Small Finance Bank has demonstrated resilience with a net non-performing assets (NPA) ratio of 2.54%, indicating prudent risk management practices. The bank's strong institutional holdings, currently at 27.98%, further underscore its stability and potential for long-term growth.

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