Sachin Bansal,\nFlipkart ex-CEO and BAC Acquisitions co-founder, has joined Ujjivan Small\nFinance Bank\u2019s board as an independent director.<\/p>\n\n\n\n
This move becomes significant when we look at what Bansal has been trying at for the past 9-10 months. His plan was to open a\u00a0bank, but for that he had to obtain a license from RBI. After discussions with the apex bank at length, he realised that he needed to meet a certain\u00a0criteria\u00a0for obtaining that license.<\/p>\n\n\n\n
Most\nimportant one of these being that the promoter of the new bank should already\nhave an NBFC, which they can then convert or transfer into the new bank.<\/p>\n\n\n\n
So is it a\nmere coincidence that Sachin Bansal joined the board of an entity that is\ncurrently focussed on chasing the process of becoming a bank? We think not.<\/p>\n\n\n\n
But, how does it make sense for Ujjivan? As\u00a0ET\u00a0reports, the Small Finance Bank is aiming to scale up its business with the help of technology and turn the business into a mass market bank. Here, Sachin Bansal can offer the bank with his extensive knowledge of tech and business as well as brand value before entry into the larger market, in return for making him a direct part of the process as a director.<\/p>\n\n\n\n
Ujjivan had recently\nalso appointed Nitin Chugh, the ex- digital banking head of HDFC Bank., as\ntheir next Chief Executive to lead the process of digitising the new bank to\ndrive scale.<\/p>\n\n\n\n
August will\nsee Chugh joining the Bank, but he will take Samit Ghosh\u2019s Managing Director\nposition in December. Meanwhile, Bansal will join the board as soon as June 1.<\/p>\n\n\n\n
Why\nUjjivan Small Finance Bank?<\/strong><\/p>\n\n\n\n It is not\njust that Ujjivan is a Small Finance Bank scaling to a mass market bank that\nbecomes the selling point for the firm. In past one fiscal year, the firm has\nseen major improvement in terms of its numbers. Net annual profit has gone up\n27X from Rs 7.3 crore to Rs 198.4 crore, net Non Performing Assets (NPA) ratio\nwent down from 0.7% to 0.3%.<\/p>\n\n\n\n The share of\nretail deposits grew from 11% of the total (Rs 428 crore) to 37% of the total\n(Rs 2,736 crore) and the loan assets increased 46% to Rs 11,049 crore.<\/p>\n\n\n\n One area of\nconcern remained the high cost to income ratio that the firm plans on tackling\nby starting the facility of current account and savings account (CASA). For\ninvestor interest the Bank will try to obtain assurance from RBI along with the\nlicense by listing the bank within the deadline. A win win deal for all\nparties.<\/p>\n","protected":false},"excerpt":{"rendered":" Sachin Bansal, Flipkart ex-CEO and BAC Acquisitions co-founder, has joined Ujjivan Small Finance Bank\u2019s board as an independent director. This move becomes significant when we look at what Bansal has been trying at for the past 9-10 months. His plan was to open a\u00a0bank, but for that he had to obtain a license from RBI. […]<\/p>\n","protected":false},"author":13,"featured_media":1902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[45],"tags":[],"class_list":["post-1901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-articles"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/1901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=1901"}],"version-history":[{"count":2,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/1901\/revisions"}],"predecessor-version":[{"id":3367,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/1901\/revisions\/3367"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/1902"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=1901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=1901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=1901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}