Ticket size is the size of the loan made by the company to its customers. For eg. when Ujjivan says that its ticket size is Rs 25,000 it means that on average the amount of loan given to each of its customers is Rs 25,000.
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Scheduled bank status given to Ujjivan Small Finance Bank.
Now the company will be able to raise deposits from Financial institutions, insurance companies, or individual companies and thus the cost of funding will come down.
150BPS will be the reduction in funding cost as stated by the company in Q1 con call.
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There is sudden decrease in ujjivan share price. What can be looked at to understand the reason behind such movements?
Currently invested- with long term outlook when banking license benefits start to come in. Funding costs for loans given will come down and cross sell opportunities arise but what is your opinion on overheads of banking operations wiping this out?
Ujjivan is hot stock after getting scheduled bank status, cost of capital has come down by 200 BPS which is huge positive. Added more to my existing holdings after this news, will add further if price drop.
Correct me if I"m wrong but isnât that supposed to happen over next 2 -3 quarters. They are not going to immediately switch.
Second - I read in another forum that banks et al are avoiding lending to the MFIs lately. Does anyone know if this is the case?
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Ujjivan is a Small finance bank & will be able to raise commercial papers after getting scheduled bank status. Reducing exposure to MfI by conversation in to bank customers. Niche area of operation with limited competition. Also NIM will be higher with low ticket hence low NPA. To me it looks consumer stock. Has potential to create huge wealth in long term
Management guided that costs will increase until scale is reached for the next two years and afterwards costs will be controlled while also credit cost will reduce by being a SFB.
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Ujjivan CFO Resigns on personal grounds.
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=266d2413-bc9c-415c-a037-a455d584eefe
Intimation for RBI approval for conversion of the Company from NBFC-MFI to NBFC-CIC
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=1ff1da74-8905-4cae-ad90-2b9189179612
CEO discusses multiple issues/updates.
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Hi, If anyone is working in any NBFCâŚplease share your views regarding what is the scenario of NBFCs after demonetization. Are they recovering fast?
Comprehensive report(43 pages) from Edelweiss with base case TP 452 rs/share
https://www.edelweiss.in/research/ujjivan-financial-services-ltd--play-the-transformation-451422.pdf
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So the results and presentation are out. One can view it on the Ujv or BSE website. After this quarterâs provisioning, the NPAs are around 1.3% and GNPA is 5%. Not sure if they will require another quarter to reduce NPAs below 0.5%.
My question is to anyone who can explain the provisioning process in detail. So after DEMON. many loan assets became unserviceable due to a combination of liquidity crunch and business impact to the debtor. Now, since DEMON was a temporary speedbump to a majority of population profile, why is it not the same case with these debtors. Could these loan tenures not be extended from said original 12 months to 15 or 18 months, where the 2-3 months of unpaid installments are paid back later.
If this would be the case, what is the need for the provisioning, and if the said provisioning is mandated by RBI guidelines, then could we see a potential reversal in provision charges once these loans are paid back at an extended timeframe. Or maybe the GNPAs are considered lost cause and will remain so, unrecoverable.
Any insight into this will be greatly appreciated.
Thank you in advance.
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http://www.bseindia.com/xml-data/corpfiling/AttachLive/cbb3d9a9-0ac7-4d53-8f65-c51e11097db0.pdf INVESTOR PRESENTAION
Weak topline and loan-book growth suggest the company is yet to reach normalcy (quite unlike Bharat Financial which has shown strong signs of revival this quarter).
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Call Transcripts
http://www.bseindia.com/xml-data/corpfiling/AttachLive/92d7fa8e-88ae-4f65-a68a-b75a0d1b3042.pdf
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If anyone have access to ICRA reports- Please post the summary
https://www.icraresearch.in/research/ViewResearchReport/1662
Thanks