Ujjivan SFB to raise 409 crore from IFC and three life insurers

what happened

Ujjivan Small Finance Bank plans to raise 409 crore rupees through a preferential equity allotment. The International Finance Corporation (IFC) is expected to contribute about 249 crore, with the rest coming from Bajaj Life Insurance, Aditya Birla Sun Life Insurance and HDFC Life Insurance. According to the bank's exchange filing, it will privately place up to 6.32 crore shares at 64.73 rupees each, including a premium of 54.73 rupees over the 10 rupee face value. The board has approved the subscription agreement with IFC.

Separately, the bank reported a 200% rise in second-quarter net profit, to 365 crore. Net interest income climbed 35% to 1,244 crore, and the net interest margin stood at 8.4%, up 55 basis points year on year. The information is based on TradingView reporting.

why it matters

For markets, the deal mainly matters for the bank's capital base, as fresh funding from IFC and the insurers widens its shareholder register. Strong margins and rising interest income point to solid lending performance, which is relevant for investors following India's banking sector. The deal is relatively small, so its effect on broader indices is likely to be limited.

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