Ujjivan Small Finance Bank Experiences Revision in Evaluation Amid Mixed Performance Indicators

Ujjivan Small Finance Bank, a midcap player in the private banking sector, has recently experienced a revision in its evaluation by MarketsMOJO. The adjustment reflects the bank's strong long-term fundamental strength, highlighted by a robust Tier 1 Capital Adequacy Ratio of 24.50%. This solid foundation is complemented by impressive growth metrics, with Net Interest Income increasing at an annual rate of 30.77% and net profit rising by 41.98%.
Despite these strengths, the bank has faced challenges, including a significant decline in profit after tax for the quarter ending September 2024, which fell by 25.9%. Additionally, the Gross Non-Performing Assets (NPA) ratio reached a concerning 2.52%. The stock has also underperformed the broader market, generating a return of -41.52% over the past year, while the BSE 500 index posted a gain of 12.85%.

Ujjivan Small Finance Bank has been added to MarketsMOJO's list, reflecting its high institutional holdings of 27.13%, indicating confidence from larger investors. The stock currently offers a high dividend yield of 4.4%, although it is technically positioned in a mildly bearish range.