Ujjivan Small Finance Bank submits application for universal banking licence
04 Feb 2025, 09:14 PMThe RBI recently set up a committee to evaluate applications for universal banks as well as small finance banks.
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Ujjivan Small Finance Bank has submitted the application for universal banking licence to the Reserve Bank of India (RBI).
"This step aligns with the bank’s long-term vision to strengthen its offerings and its position in the sector," the small finance bank stated. "Ujjivan is prepared to join the ranks of universal banks, considered a very significant milestone in its evolution, subject to RBI granting its approval to its application."
Commenting on the development, Sanjeev Nautiyal, MD & CEO, Ujjivan Small Finance Bank said, “Following the guidelines set by the Reserve Bank of India (RBI), we have submitted our application today and are seeking the regulator's approval for the voluntary transition from a Small Finance Bank to a Universal Bank. The Bank has consistently demonstrated strong financial performance and a commitment to financial inclusion, serving a diverse customer base across the country."
"Securing the Universal Banking licence, if approved, will strengthen Ujjivan’s efforts to provide holistic financial services to its customers and empower all aspiring Indians with a wider range of banking solutions," Nautiyal added.
Ujjivan recently reported a 64% drop in net profits to Rs 103 crore for the third quarter ended December 2024, as provisions for bad loans increased. The SFB earned a net profit of Rs 300 crore in the same period previous year.
The interest income of the bank increased to Rs 1,591 crore in Q3 FY25, compared to Rs 1,471 crore reported in Q3FY24.
The RBI recently set up a committee to evaluate applications for universal banks as well as small finance banks.
In its circular, the banking regulator announced the names of members of the Standing External Advisory Committee (SEAC) for evaluating applications for universal banks as well as small finance banks.
The applications for Universal Banks and Small Finance Banks are initially screened by the regulator, to ensure prima facie eligibility of the applicants. The Standing External Advisory Committee will evaluate the applications.
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