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No plans to raise capital, says Ujjivan Small Finance

Updated : November 24, 2020 12:13 PM IST

There are no plans to raise capital, said Nitin Chugh, MD and CEO of Ujjivan Small Finance Bank in an interview with CNBC-TV18.

“Since we have only one operating business the fundamentals and the plans do not change and the holding company doesn’t have any other operating business other than the bank. So everything that we have said in the context of the bank in the past or more recently, those remain unchanged,” he said.

“As far as growth is concerned, we need to wait for the second half of FY21 to be able to comment on loan growth,” added Chugh.

On business, he said, “We have been requesting RBI for the collapse of Non-Operative Financial Holding Company (NOFHC) structure.”

According to him, a reverse merger is the best option for collapsing the NOFHC structure.

The bank’s collections improved, but there is stress in Microfinance Institutions’ (MFI) portfolio in Assam, Punjab, West Bengal and Maharashtra.

For the entire interview, watch the video
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