Ujjivan Small Finance Bank (SFB) has offloaded a stressed loan portfolio, including written-off loans worth Rs 364.51 crore, to an Asset Reconstruction Company (ARC) for a consideration of Rs 34.26 crore.
In a regulatory filing, the bank confirmed that the transaction was completed on 28th February, 2025, after receiving approval from its authorised board committee on 21st February, 2025. The sale is part of Ujjivan SFB’s broader strategy to strengthen its balance sheet and reduce its Non-Performing Assets (NPAs).
Despite the asset sale, the bank reported a slight increase in gross NPAs, which rose to 2.68 per cent in Q3 FY25 from 2.52 per cent in the previous quarter. However, net NPAs remained stable at 0.56 per cent.
Ujjivan SFB’s total loan book stood at Rs 30,466 crore, reflecting a 9.8 per cent Year-on-Year (YoY) growth. The bank’s secured loan portfolio has also witnessed significant expansion, now comprising 39.3 per cent of the total loan book, compared to 28.3 per cent a year ago.
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