The reason I prefer Ujjivan is because it’s valuations are cheaper, better geographic diversification and better GNPA and NNPA ratios. But both have some pain left in theNPA and pre-demonetization growth fronts. The valuation has caught up a bit as Equitas fell from Rs170 odd.
I will sound extremely biased towards Ujjivan so pardon me
In this business of possible tail risks, geography diversification must be very important. Ujjivan’s GNPA had been extremely low pre-demon (thats because their loan book was totally composed of group loans which have negligible NPLs). Their CASA is low because their strategy until now has been to garner institutional deposits. Hence, a lot of scope for CASA improvement as all branches are converted to SFBs. They only yet have ~100 liability branches. Samit Ghosh’s track record impressed me more (I’m not undermining Equitas management). And I love Ujjivan’s logo!!
Disc. core holding for very LONGTERM. Biased because invested or the other way round, I do not know.