Expect to get universal banking licence by December

Ujjivan Small Finance Bank is looking to expand the secured loan portfolio as part of its growth strategy.

- SANJEEV NAUTIYAL, MANAGING DIRECTOR & CEO, UJJIVAN SMALL FINANCE BANK

for borrowers with a ₹3-lakh household income. The guardrails also disqualify borrowers with up to 60 days past due (DPD) and ₹3,000 outstanding, but we have taken a stricter approach by using a 30-day DPD cut-off.

This has had an impact, as many delinquent customers became ineligible. But this is an industry-wide challenge. That said, Ujjivan's portfolio health remains strong. In nine of the 10 key states, the industry's average portfolio at risk or PAR (31-180 days) is 6.7% while ours is around 3.6-3.7%.

When do you expect microfinance stress to ease?