Ujjivan Microfinance MD Samit Ghosh Resigns

Ujjivan Financial Services founder and MD Mr Samit Ghosh resigned to the position to take up the new position as MD and CEO of Ujjivan Small Finance Bank to be operational next month.

Microfinance pioneer and Nobel Laureate Muhammad Yunus will open the Ujjivan Self Finance Bank in the first week of February in Bengaluru.

Ujjivan Financial Services CFO Sudha Suresh has been appointed as MD and CEO of the company with effect from February 1 for a period of three years. Hiren Shah has been appointed the company’s CFO in her place.

Ujjivan Financial Services has posted 11.87% decline in net profit at Rs 43.94 crore for the quarter ended December 2016. The total income rose by 38.8% to Rs 371.32 crore during the quarter, but the net interest income rose to Rs 199.01 crore.

Sudha Suresh has attributed the fall in profits "to costs related to transition to bank and increased provisioning arising due to lower collection efficiency post-demonetisation." Though RBI allowed for classification of portfolio for 90 days over dues in demonetisation period of November and December, she said Ujjivan took a conservative stance.

"We intend to launch Ujjivan Small Finance Bank in the first week of February at Bengaluru. We have obtained most of the approvals required to commence our operations and are well prepared on technology, infrastructure, channels etc," she said.

However, the share prices of Ujjivan are growing positively at Rs.354 as of Wednesday, Jan 25, 2017 and the target price according to Centrum is around Rs.390 giving an optimistic outlook.

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