Ujjivan SFB Cleans Up Balance Sheet: Offloads ₹365 Crore Stressed Loans to ARC

Ujjivan Small Finance Bank has successfully completed the sale of a ₹365 crore micro-banking loan portfolio to an Asset Reconstruction Company (ARC). The transaction, approved on February 21, 2025, includes ₹280.98 crore of non-performing assets (NPAs) and ₹84.02 crore of written-off loans. This strategic move aims to improve the bank's asset quality and financial health, as it carries an 85.61% provision on the sold portfolio. The sale, conducted through the Swiss Challenge Method, fetched ₹54.75 crore. Despite this positive step, Ujjivan SFB's stock closed at ₹32.62 on the NSE, reflecting ongoing sector challenges and the bank's recent mixed financial results.

 

Sources: Business Standard, Moneycontrol, Angel One