Shares of lender Ujjivan Small Finance Bank (SFB) declined up to 4.5% in the early morning trade on Wednesday, April 15, defying the positive trend in the Indian stock market after the Reserve Bank of India (RBI) rejected its application for a universal banking license.
Ujjivan SFB share price hit the day’s low of ₹57.60 on the BSE today, down 4.54% as against its last closing price of ₹60.34 on Monday. The Indian stock market’s benchmark indices, however, traded over 1.55% higher at the same time amid renewed optimism due to the second round of peace talks between the US and Iran.
Why did RBI reject Ujjivan SFB’s application?
The central bank on Monday rejected Ujjivan SFB’s application, citing for universal bank status, citing the need for greater diversification of its loan book.
The exchange filing stated that RBI took note of the bank’s recent efforts towards diversification of its loan portfolio. However, the central bank was of the view that there is “scope for progress” in this area.
(This is a developing story. Check back for updates.)
