Ujjivan Small Finance Bank to apply for universal licence this fiscal: MD Sanjeev Nautiyal
Amid concerns over overleveraging of microfinance borrowers at the industry level, Ujjivan Small Finance has started chasing the next aspiration—a universal banking licence. For the first time ever, the bank has said in no uncertain terms that it would apply for the licence no later than March 2025. In his first ever media interaction after taking the driver’s seat, managing director Sanjeev Nautiyal discussed with ET's Atmadip Ray the business decisions that are taking shape at the bank's headquarters in Bengaluru. Executive director Carol Furtado also joined the conversation. Here is an edited excerpt:
Q. Ujjivan is one of the just two small finance banks eligible to apply for universal banking licence at this point of time. AU has already thrown the hat in the ring. What is Ujjivan up to?
Sanjeev Nautiyal: We are working on a plan and within this financial year, we see ourselves in a very good position to make an application to the Reserve Bank of India.
Has the Ujjivan board approved it?
Sanjeev Nautiyal: The board is agreeable to the fact that we should apply. We are building a strategy based on the guidance provided by the board.
How are you preparing yourself?
Sanjeev Nautiyal: We have to decide what kind of business and to what extent that particular business that we would like to do, building a strategy on all the microfinance and the secured side that we are doing. We have to decide what the mix of business that we would like to do five years down the line. For each year, we will have a certain mix of
