Ujjivan Small Finance Bank | IPO Note
USFB, a wholly owned subsidiary of Ujjivan Financial Services (UFSL), was
incorporated in July 2016, but started its operations on Feb 01, 2017 after its
promoter company UFSL transferred its business to USFB. By this time, UFSB also
received receipt of the license to operate as a small finance bank. It operates as a
scheduled commercial bank under the RBI norms.
UFSL was operating as an NBFC since 2005, and hence, USFB gets an upper edge
of having an experienced promoter in its field. The bank’s business is primarily
based on the joint liability group-lending model for providing collateral-free, small
ticket-size loans to economically active poor women. It also offers individual loans
to Micro and Small Enterprises (MSEs) and insurance. USFB follows a diversified
operation model with presence across 24 states. This enables the bank to reduce
credit risk in its loan portfolio. Apart from this, the bank adopted an integrated
approach to lending, which combined a customer touch point similar to
microfinance, with the technology infrastructure similar to that of a retail bank. This
makes it more competitive in customer service in its industry.
Key Management Personnel
Samit Kumar Ghosh is the Managing Director and Chief Executive Officer of USFB.
He holds a bachelor’s degree in arts with honors in economics from Jadavpur
University and a master of business administration degree from the University of
Pennsylvania. He has worked with First National City Bank, Standard Chartered
Bank, HDFC Bank, Citibank, and the Bank Muscat Al Ahli Al Omani. He was the
president of Microfinance Institutions Network and the chairman of Association of
Karnataka Microfinance Institutions.
Nitin Chugh is the President of USFB. Joined as a President with effect from August
17, 2019 and will assume office of MD &CEO from December 01, 2019
Experience across multiple associations including, HDFC Bank Ltd, Standard
Chartered Bank, HCL Ltd. and Modi Xerox Ltd.
Sanjay Kao is the Chief Business Officer of Bank. He is a post graduate diploma in
management from the Indian Institute of Management, Calcutta. He was
previously employed with Lipton India Limited, Dunia Finance LLC, Citibank, N.A.
and ABN AMRO Bank, N.V. He was appointed as the Chief Business Officer of the
Bank with effect from February 12, 2018.
Upma Goel is the Chief Financial Officer of Bank. She is a chartered accountant
from the Institute of Chartered Accountants of India. She was previously employed
with L&T Finance Holdings Limited, Ujjivan Financial Services Limited and Escorts
Securities Limited. She joined the Bank as the Chief Financial Officer with effect
from February 01, 2017.
Sachin Bansal, co-founder of Flipkart, is an Independent Director of USFB. He
holds a bachelor of technology degree in computer science and engineering from
the Indian Institute of Technology, Delhi.