Stock Crash: RBI takes biggest decision on bank, shares fall as soon as market opens.

News Topical, Digital Desk : Big news has arrived. The Reserve Bank of India (RBI) has rejected the bank's application to become a universal bank, following which its shares fell. The bank's shares fell as soon as the stock market opened on April 15th. This is the same stock that has gained more than 20 percent in the past six months.

Ujjivan Small Finance Bank Stock News
Shares of Ujjivan Small Finance Bank opened lower on Wednesday. In an official statement, the bank said the RBI acknowledged its efforts to diversify its loan portfolio, but noted the need for further progress. The regulator advised the bank to reapply after achieving a more balanced and diversified portfolio.

SFB retains 'Buy' rating
Brokerage firm Kotak Institutional Equities has maintained a 'Buy' rating on Ujjivan SFB and has a target price of ₹72 per share. The brokerage stated that the decision is not favorable, but the RBI has not raised any concerns regarding governance, compliance, or operational status. Kotak also stated that its investment assessment did not include the potential benefits of becoming a universal bank.

The bank submitted its application in February last year as part of its long-term strategy. Transforming into a universal bank is a key goal for it, which could help expand its business, increase its share of secured loans, and reach more customers. Ujjivan stated that it will continue to work on further diversifying its portfolio and will reapply as per RBI guidelines.

On Monday, the bank's shares fell 0.33 percent to close at ₹60.10. Currently, the Ujjivan Small Finance Bank share price is ₹58.26. It has gained 1.19 percent in five days. While it has gained 15.38 percent in one month and 20 percent in six months. In one year, the stock has gained 46.42 percent.

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