The NBFC company, Ujjivan Financial Services, on Tuesday notified exchanges that its wholly owned subsidiary Ujjivan Small Finance Bank is now on included in the second schedule to the Reserve Bank of India Act, 1934.
With this from the date of notification, Ujjivan Small Finance Bank is now granted the status of a Scheduled bank The development lifted .he shares of the company higher by as much as 6%. On 11:37 am, the stock of the company was seen trading at 345.75 up by 6.35% on the BSE
To one of the news channels, MD and CEO of the company said, "With this scheduled bank status, we can issue certificate of deposits now but there is not much changes in terms of asset mix due to scheduled bank status". Liabilities can also see an increase with more of CDs and Fds. With it, the MD expects the cost of borrowing to come down by 200 basis points in the current financial year itself.