Ujjivan SFB stock top gainer on Nifty500, jumps 12%; here's why -

Collection efficiency also improved gradually from 107 percent in October 2021 to 112 percent in December 2021.

Rise in COVID-19 cases, restrictions trigger fears of NPA surge  

Further, the bank's gross non-performing asset ratio also improved from 11.6 percent in October to 10.5 percent in December.

“Improving trend in disbursements is likely to sustain in Q3FY22e given the steady improvement in collections during Q2FY22 reflecting resiliency of MFI customers, and higher growth in focused products like AHL, MSE etc. is likely to result in strong around 5 percent QoQ AUM growth during Q3FY22e. Focus on building retail deposit base would keep deposit mobilization accelerated at 4 percent QoQ,” said ICICI Securities.

In a separate announcement, shareholders of the bank approved the appointment of Ittira Davis as the Managing Director.

At 9:56 am, shares of Ujjivan Small Finance Bank were trading 8 percent higher at Rs 21.5 on BSE. The stock has been gaining for the last three days and has risen over 13 percent during the period.