Ujjivan Small Finance Bank (USFB) had a stellar listing in 2019. The stock, however, lost momentum in the wake of the pandemic because of twin concerns on growth as well as asset quality. However, with the COVID-19 vaccine in sight and with the economy recovering, collection efficiency at USFB is improving.
There are four states where the collection efficiency is still below the company average, but they have Rs 299 crore as COVID provision and could provide more in FY21. Disbursements too are gradually improving.
Moneycontrol.com’s Madhuchanda Dey gives more details on the stock’s performance in the special segment ‘Moneycontrol Pro Ideas For Profit’.Watch the video for more