Ujjivan Small Finance Bank board announces interim dividend; shares rise

Ujjivan Small Finance Bank dividend news: Ujjivan SFB shares were in demand on Tuesday, as investors awaited the outcome of a meeting of the lender's board to consider an interim dividend for the year ending March 2023.

Ujjivan SFB fixed Wednesday, March 01, 2023, as the record date for the dividend, which is expected to be declared today - Image Source: Zee Business

Ujjivan Small Finance Bank dividend news: Ujjivan SFB shares were in high demand on Tuesday as the lender's board announced an interim dividend for the current financial year. The Ujjivan Small Finance Bank stock gained as much as 2.7 per cent to Rs 28 apiece on BSE.

At around 11:55 AM, the counter changed hands at Rs 27.95 apiece on the bourse, a premium of 2.38 per cent over its previous closing price.

“Equity Shares – Interim Dividend of 7.5 per cent i.e. Rs. 0.75 each, per equity share of face value Rs. 10 each Preference Shares – Interim Dividend of 5.5 per cent i.e. Rs. 0.55 each, per preference share of face value Rs. 10 each,” Ujjivan SFB said in its filing on Tuesday, February 21, 2023.

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Ujjivan Small Finance Bank dividend: When is the record date?

The company has set March 1 as the record date for such an interim dividend.

Ujjivan Small Finance Bank: Q3 Results

Earlier on February 2, 2023, Ujjivan SFB announced better-than-expected December quarter earnings driven by higher net interest income, measured increase in operational expenditure, and higher other income.

The management of Ujjivan SFB expects a similar earnings performance in the fourth quarter of FY23, and 25 per cent loan growth along with 1 per cent credit cost in FY24, YES Securities analyst Rajiv Mehta said in its report on the lender.

Ujjivan Small Finance Bank: Brokerage View

Amid encouraging medium-term commentary on asset quality, growth, loans/deposits pricing flexibility, and cost metric, the brokerage raised earnings estimates by 35/20 per cent for FY23/24, respectively on much stronger-than-expected operational delivery in Q3FY23, YES Securities also said in a report.

YES Securities estimates the bank to deliver an 18-20 per cent return on equity (RoE) and expects the stock to re-rate further. It maintained a ‘buy’ stance with a revised target of Rs 45 per share, implying a 65 per cent upside, and said valuation is quite attractive at 5.7x P/E and 1.1x P/ABV on FY24 estimates.