Ujjivan Small Finance Bank
Ujjivan Small Finance Bank Limited announces the retirement of Sathyananda Prabhu as Head of Internal Audit, effective February 10, 2025.
Ujjivan Small Finance Bank Limited has announced that Mr. Sathyananda Prabhu, the Head of Internal Audit, will be retiring from his position on February 10, 2025, earlier than his scheduled retirement date of April 3, 2025. This decision was made after discussions with the bank’s management and Mr. Prabhu’s request to retire earlier.
As a result of Mr. Prabhu’s retirement, the bank has already initiated the process of hiring a new candidate to fill the position of Head of Internal Audit. The bank will finalize a suitable candidate for the role, pending necessary Board-level approvals. Once the approval is received, the bank will inform the exchanges of the new appointment in due course.
It is worth noting that the bank had previously announced Mr. Prabhu’s scheduled retirement date as April 3, 2025. However, due to his request and the bank’s agreement, the retirement date has been brought forward to February 10, 2025. The bank’s decision to hire a new candidate for the position of Head of Internal Audit demonstrates its commitment to ensuring continuity and stability in its operations.
Ujjivan Small Finance Bank Aims to Broaden Horizons with Universal Banking License
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Ujjivan Small Finance Bank (SFB), a leading microfinance institution in India, has applied for a universal banking license from the Reserve Bank of India (RBI). This move aims to expand the bank’s services beyond its current microfinance business and cater to a broader customer base. With a universal banking license, Ujjivan SFB will be able to offer a wider range of financial products and services, including deposit mobilization, savings accounts, and term deposits, in addition to its existing microfinance offerings.
Ujjivan SFB has been operating as a small finance bank since 2017, focusing on serving the unbanked and underbanked segments of the population. With a presence in over 24 states and a network of over 750 branches, the bank has successfully served over 5.5 million customers, with combined loan disbursals exceeding ₹1,300 crore.
The application for a universal banking license is part of the bank’s strategy to scale up its operations and expand its reach. The bank’s management team believes that this will enable them to take advantage of the growing demand for financial services in India, particularly in the segments that are currently underbanked.
The RBI has been encouraging small finance banks to apply for a universal banking license, with a view to increasing financial inclusion and deepening financial markets. The bank has also received support from global investors, including the likes of Blackstone Group, Cathay Life Insurance, and ICICI Bank, which has provided a Rs 1,200 crore investment in Ujjivan SFB in 2017.
If granted a universal banking license, Ujjivan SFB will be able to leverage its existing infrastructure and experience in microfinance to expand its services and customer base. This will enable the bank to offer a broader range of financial products and services, including deposits, savings accounts, and fixed-income instruments, in addition to its existing microfinance offerings. The bank’s expansion plans are expected to create new job opportunities and contribute to the growth of the Indian economy, thereby reinforcing the country’s position as one of the world’s fastest-growing economies.
Ujjivan Small Finance Bank Files Application for Full-Fledged Universal Banking License.
Ujjivan Small Finance Bank has applied for a universal banking licence, according to a report by NDTV Profit. This move marks a significant step forward for the bank, which was previously a small finance bank that focused on serving low-income customers.
As a small finance bank, Ujjivan was limited in its operations and was not allowed to accept deposits from individuals or corporates above a certain threshold. However, with the application for a universal banking licence, the bank will be able to expand its operations and offer a wider range of financial services to its customers.
The universal banking licence will allow Ujjivan to accept deposits from individuals and corporates, as well as offer a range of banking services such as loans, credit cards, and investment products. This will enable the bank to diversify its revenue streams and increase its scale of operations.
Ujjivan’s application for a universal banking licence is a significant development in the Indian banking sector, as it marks one of the first instances of a small finance bank seeking to transition to a universal bank. The move is seen as a vote of confidence in the bank’s business model and its ability to serve a wider range of customers.
The Reserve Bank of India (RBI) has been encouraging small finance banks to transition to universal banks, as it believes that this will help to increase financial inclusion and improve access to financial services for low-income customers. The RBI has also been working to simplify the process of obtaining a universal banking licence, in order to encourage more small finance banks to make the transition.
Ujjivan’s application for a universal banking licence is subject to the approval of the RBI, which will conduct a thorough review of the bank’s application and assess its readiness to operate as a universal bank. If approved, Ujjivan will become one of the first small finance banks in India to transition to a universal bank, and will be well-positioned to take advantage of the growing demand for financial services in the country.
Ujjivan Small Finance Bank formally applies to RBI for a universal banking licence, according to a PTI report.
Here is a summary of the content in 400 words:
Ujjivan Small Finance Bank Limited has submitted an application to the Reserve Bank of India (RBI) for a universal banking licence. This move marks a significant step for the small finance bank, which was earlier licensed to operate as a small finance bank until March 2021. The bank’s application is subject to the RBI’s approval, which would enable it to expand its services and reach a broader customer base.
As a small finance bank, Ujjivan Small Finance Bank was restricted to serving low-income individuals and small businesses, with a focus on microfinance services. However, with a universal banking licence, the bank would be able to offer a wider range of financial products and services, including corporate banking, project finance, and international trade services. This would not only expand the bank’s customer base but also increase its revenue streams.
The bank’s application follows the RBI’s commitment to deepen financial inclusion and increase access to formal banking services, particularly in underserved regions. Since its inception in 2005, Ujjivan has been focused on serving underserved markets, with a presence in over 2,400 villages and 1,300 towns across the country.
Ujjivan’s application for a universal banking licence is seen as a strategic move to expand its reach and offer more comprehensive financial services to its customers. The bank has been rapidly expanding its services, increasing its deposit base, and building a robust digital ecosystem. With a universal banking licence, Ujjivan would be better positioned to compete with larger private sector banks, while maintaining its focus on financial inclusion and community development.
The RBI is expected to evaluate Ujjivan’s application based on various criteria, including its financial stability, governance structure, and adherence to regulatory guidelines. If approved, Ujjivan would join a select group of few small finance banks that have successfully transitioned to universal banking. The development is expected to be closely watched by the financial sector, as it could set a precedent for other small finance banks seeking to expand their scope of services.
Ujjivan Small Finance Bank Seeks To Expand Ambitions with Full-Fledged Universal Banking License
Ujjivan Small Finance Bank (USFB) has made a significant move by applying for a universal banking licence, paving the way for it to become a full-fledged commercial bank. This strategic decision aligns with the bank’s plan to expand its financial services, increase regulatory flexibility, and strengthen its position in the banking sector.
USFB has met the RBI’s eligibility criteria, which include being a listed entity, having a net worth of at least ₹1,000 crore, maintaining a net non-performing asset (NPA) ratio of less than 1% for two consecutive financial years, and having a diversified loan portfolio. The bank’s focus has been on serving underserved and unbanked sections of society, and it has expanded its portfolio to include savings accounts, fixed deposits, microloans, housing loans, and small business loans.
The shift to a universal bank will enable USFB to offer a wider range of services, including corporate banking and larger loan products. This move will provide customers with access to more banking products beyond retail and microfinance, and signal growth potential for investors.
This development follows a growing trend of small finance banks transitioning to universal banks to expand their operational capabilities. AU Small Finance Bank is another example of a small finance bank that has applied for a universal banking licence. USFB’s move has been a long-term vision to strengthen its position in India’s banking sector, as announced by its Managing Director Sanjeev Nautiyal in November 2024.
The application has been formally submitted to the Reserve Bank of India, marking a significant milestone in USFB’s journey towards becoming a full-fledged commercial bank. This transition will not only expand USFB’s service capabilities but also increase its competitive edge in the market.
Ujjivan Small Finance Bank has submitted its application for a Universal Banking Licence to the Reserve Bank of India.
Ujjivan Small Finance Bank (SFB) has filed an application with the Reserve Bank of India (RBI) to obtain a universal bank license. This move marks a significant step forward for the bank, which aims to provide a wider range of banking services to its customers. The application was submitted in accordance with the guidelines set by the RBI, and the bank is seeking approval for the voluntary transition from a small finance bank to a universal bank.
As a universal bank, Ujjivan SFB will be able to offer a broader range of financial services to its customers, including deposit-taking, lending, and other banking products. This will enable the bank to provide more comprehensive financial solutions to its customers, empowering them to achieve their financial goals.
The bank’s Managing Director and CEO, Sanjeev Nautiyal, expressed his enthusiasm for the application, stating that securing the universal banking license will strengthen the bank’s efforts to provide holistic financial services to its customers. He emphasized that the bank’s goal is to empower all aspiring Indians with a wider range of banking solutions.
The transition to a universal bank will also enable Ujjivan SFB to expand its reach and customer base, providing more opportunities for growth and development. The bank’s application is subject to the approval of the RBI, which will review the application and assess the bank’s readiness to operate as a universal bank.
Overall, Ujjivan SFB’s application for a universal bank license is a significant development in the banking industry, and it is expected to have a positive impact on the bank’s customers and the wider financial ecosystem.
2025 FD Rates Revealed: Beat SBI and PNB with Up to 9% Returns on Fixed Deposits – Get the Inside Scoop Here!
Fixed Deposit (FD) schemes are a popular way to save money and earn returns, with the guarantee of getting the principal amount back after a fixed period along with interest. Major banks such as SBI and PNB offer interest rates up to 7%, while small finance banks offer higher rates, up to 9%. Small finance banks, such as Ujjivan, AU, Unity, and Utkarsh, offer attractive FD rates, making them a great option for investors.
Ujjivan Small Finance Bank offers interest rates ranging from 7.50% for 9-month FDs to 8.25% for 12-month FDs. AU Small Finance Bank offers rates of up to 8% for 24-36 month FDs, while Unity Small Finance Bank offers 9% interest for 1001-day FDs. Utkarsh Small Finance Bank offers rates of up to 8.50% for 1500-day FDs.
These small finance banks offer higher interest rates than major banks, making them a great option for investors. However, it is essential to note that FD interest rates are subject to change, and investors should verify the latest rates and terms directly with the respective banks before making any financial decisions. It is also recommended to consult a financial advisor for better results. Overall, investing in small finance banks can help individuals earn higher returns on their fixed deposits.
Maximize your returns: Discover the best fixed deposit options for your Rs 5 lakh investment with top small finance banksLet me know if you’d like me to adjust anything further!
Small finance banks have followed in the footsteps of major banks, increasing their fixed deposit (FD) interest rates in recent times. This increase has benefited investors, who can now earn higher interest amounts on their FD investments. Small finance banks face strong competition in acquiring customers, prompting them to offer higher returns on similar-duration FDs compared to public sector undertakings (PSUs) and other private sector banks.
To illustrate, here are the top FD interest rates offered by leading small finance banks, along with the interest earnings on a Rs 5 lakh investment:
* AU Small Finance Bank: 7.10% interest rate for a 1-2 year term, earning up to Rs 23,300 on a Rs 5 lakh investment.
* Equitas Small Finance Bank: 7.25% interest rate for a 1-2 year term, earning up to Rs 24,875 on a Rs 5 lakh investment.
* Ujjivan Small Finance Bank: 7.30% interest rate for a 1-2 year term, earning up to Rs 25,500 on a Rs 5 lakh investment.
* Jana Small Finance Bank: 7.40% interest rate for a 1-2 year term, earning up to Rs 26,575 on a Rs 5 lakh investment.
* Suryoday Small Finance Bank: 7.50% interest rate for a 1-2 year term, earning up to Rs 27,750 on a Rs 5 lakh investment.
Please note that these calculations are projections and should not be taken as investment advice. It’s essential to perform your own research or consult an expert for comprehensive financial planning.
In conclusion, small finance banks have increased their FD interest rates to remain competitive in the market. Investors who opt for their FDs can earn higher returns compared to PSUs and private sector banks, making them a viable option for those seeking steady returns on their investments.
Three microfinance institutions – Ujjivan, Arohan, and Asirvad – will reduce their lending rates starting January.
Microfinance-focused lenders in India, including Ujjivan Small Finance Bank, Arohan Financial Services, and Asirvad Micro Finance, have lowered their lending rates in response to the Reserve Bank of India’s (RBI) call for a “fair, reasonable, and transparent” pricing policy for their small-value loan products. This move is a significant departure from the previous lending rates, which were raised by 300-450 basis points after the RBI de-regulated interest rates for Non-Banking Financial Companies-Micro Finance Institutions (NBFC-MFIs) in 2022.
Ujjivan Small Finance Bank reduced its lending rates by 75 basis points, with rates ranging from 21.75% to 23%. Arohan Financial Services, which was previously serving a lending ban, has introduced a self-imposed margin cap of 12% over the cost of funds and a maximum 25% growth guidance for any business year. Asirvad Micro Finance lowered its interest rate on income-generating loans to 21.47% from 23.96% earlier.
The RBI had banned Ujjivan, Arohan, and other NBFC-MFIs from lending for a period of time due to concerns over excessive interest spreads and gaps in household income assessments, leading to over-lending. However, the RBI removed the restrictions from these lenders in January 2023. Arohan’s managing director, Manoj Kumar Nambiar, stated that the company had engaged with the RBI to address concerns around pricing, loan renewal processes, and control change approvals.
This development is a significant step forward in promoting financial inclusion and ensuring that small-value loan products are accessible to vulnerable borrowers at reasonable interest rates. The RBI’s efforts to regulate the NBFC-MFIs and promote fair lending practices have been welcomed by the industry, and this move is seen as a positive step towards achieving financial stability and inclusive growth.
Earn high returns with security: Explore banks offering 9.5% FD rates for a 3-year fixed deposit – Get the full list now and make your money work for you!
The Reserve Bank of India’s elevated interest rate regime has led banks to offer attractive rates on fixed deposits to attract new customers. Small finance banks, in particular, have been raising their FD rates to secure more deposits. According to a recent analysis, small finance banks have offered higher interest rates than scheduled commercial banks to attract more customers. This article examines the 3-year fixed deposit rates offered by top 10 small finance banks in January 2025, specifically for general customers and senior citizens.
The analysis reveals that Unity Small Finance Bank offers the highest FD interest rate of 9.5% for senior citizens and 9% for general customers for deposits of 1001 days. Other small finance banks, such as North-East Small Finance Bank, Suryoday Small Finance Bank, and Utkarsh Small Finance Bank, also offer competitive rates ranging from 8.5% to 9.1%.
Small finance banks, like Jana, Ujjivan, Equitas, ESAF, and Shivalik, offer rates between 8.25% to 8.75%. AU Small Finance Bank offers the lowest rate of 8% for general customers and 8.6% for senior citizens.
It’s essential to note that small finance banks are recognized as scheduled banks by the Reserve Bank of India, making deposits eligible for deposit insurance coverage up to Rs 5 lakh. Fixed deposits are considered a safe investment choice for retail investors, especially senior citizens, as they offer a guaranteed return upon maturity with low risk. Senior citizens, in particular, prefer FDs to avoid the risks associated with market-linked products in their later years.
Boost Your Savings: 5 Small Finance Banks Offer Jumbo Returns on 3-Year Fixed Deposits up to 9% – Check the List Now
Small finance banks are offering attractive fixed deposit (FD) rates to customers, with some offering as high as 9% interest rate on 3-year deposits. Here are 5 small finance banks that are offering high FD rates on 3-year deposits:
1. Ujjivan Small Finance Bank: Ujjivan SFB is offering a 9% interest rate on 3-year FDs, with a minimum deposit requirement of ₹15,000.
2. Equitas Small Finance Bank: Equitas SFB is offering an 8.75% interest rate on 3-year FDs, with a minimum deposit requirement of ₹10,000.
3. Au Financiers (India) Limited: Au Financiers is offering an 8.75% interest rate on 3-year FDs, with a minimum deposit requirement of ₹10,000.
4. Suryoday Small Finance Bank: Suryoday SFB is offering an 8.5% interest rate on 3-year FDs, with a minimum deposit requirement of ₹10,000.
5. Jana Small Finance Bank: Jana SFB is offering an 8.25% interest rate on 3-year FDs, with a minimum deposit requirement of ₹10,000.
These small finance banks are offering higher interest rates compared to traditional banks, making them an attractive option for customers looking for higher returns on their deposits. Additionally, these banks are also offering other benefits such as higher interest rates on senior citizens, special schemes for women, and online FD booking facilities.
It’s worth noting that the interest rates offered by these small finance banks may vary depending on the location and the customer’s profile. Customers should check the interest rates and terms and conditions before opening an FD account.
In comparison, traditional banks such as State Bank of India, ICICI Bank, and HDFC Bank are offering interest rates ranging from 5.5% to 7.5% on 3-year FDs. This highlights the competitive advantage that small finance banks have in terms of offering higher interest rates to customers.
Overall, small finance banks are offering attractive FD rates to customers, making them a viable option for those looking for higher returns on their deposits.
Here is a re-written version:High-Impact Deposits: Check out these competitive FD rates across banks
Small finance banks are now offering higher interest rates on fixed deposits (FDs) compared to private and government banks. According to the data provided on Paisabazaar, there are at least 11 banks that are currently offering 8% or more interest on deposits. Here are the top small finance banks offering FDs with interest rates ranging from 8% to 9% per annum:
1. North East Small Finance Bank – 9% interest on FDs with 546 days to 1111 days tenure.
2. Unity Small Finance Bank – 9% interest on FDs with 1001 days tenure.
3. Suryoday Small Finance Bank – 8.60% interest on FDs with 2-3 year tenure.
4. Jan Small Finance Bank – 8.25% interest on FDs with 1-3 year tenure.
5. Utkarsh Small Finance Bank – 8.50% interest on FDs with 2-3 year tenure.
6. Equitas Small Finance Bank – 8.25% interest on FDs with 888 days tenure.
7. Ujjivan Small Finance Bank – 8.25% interest on FDs with 12 months tenure.
Private sector banks are offering slightly lower interest rates, but still competitive compared to government banks. Some private sector banks that are offering higher interest rates include:
1. Bandhan Bank – 8.05% interest on 1-year FD.
2. IDFC First Bank – 7.90% interest on FDs with 400-500 days tenure.
3. RBL Bank – 8.00% interest on FDs with 500 days tenure.
4. DCB Bank – 8.05% interest on FDs with 19-20 months tenure.
Public sector banks are offering relatively lower interest rates, ranging from 7.25% to 7.50% per annum. International banks such as Deutsche Bank, HSBC, and Standard Chartered are offering interest rates between 7.50% and 8.00% per annum.
Investors should keep in mind that FDs carry market risks, and it’s essential to consult with experts and conduct thorough research before investing in any financial instrument.