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The move aligns with Ujjivan SFB’s strategy to diversify beyond its small finance bank operations and increase the proportion of secured loans in its portfolio. Transitioning to a universal bank would also provide the lender with greater operational flexibility and access to a wider customer base.
To qualify for a universal banking license, the bank must meet several eligibility criteria, including being listed on a recognised stock exchange, maintaining a minimum net worth of ₹1,000 crore, and fulfilling minimum capital requirements. Additionally, it must have posted a net profit in the last two financial years and ensure its gross and net non-performing asset (GNPA, NNPA) ratios remain within prescribed limits.
The RBI will conduct an initial screening to verify the bank’s eligibility before forwarding the application to a five-member standing external advisory committee for further evaluation. If approved, Ujjivan SFB will join the ranks of other small finance banks that have transitioned to full-service lenders in recent years.
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