Ujjivan Financial - Small Finance Bank

I have no position in this company .

I have started studying financial sector recently to invest. BULL in BEAR Market I have mentioned my current position .

Now I have some question on this company - from big picture view .

  1. This company has taken huge write offs last year becos of which its collection efficiencies, Net NPAs and PCR has improved … What makes you confident of current book value & the company will not do the same kind of write off say every 5 years .

  2. In loans - its repeat customer has increased from 67% and 71% in one year and loan growth is > 20% ie it had more than 20% growth in existing loanee customer base . Is company evergreening loans by giving more loans to same customers so that they can pay off old loans . Is there a RED Flag here …

  3. In borrowing its profile has shifted dramatically … CD and Institution deposit has increased and term loans from bank has reduced - What is implication of this change over – CASA is just 6% against 40% for good private banks - Can it impact its margins in coming quarters

  4. Finally with last year EPS of just 0.6 Rs and book value of 140 odd why do you think this stock is bargain at Rs 250