Whereas the financial institution had listed a slew of digital-centric improvements to extend product suite and enhance buyer outreach in its newest annual report signed by outgoing chief govt Nitin Chugh, the brand new administration has put stability as its foremost precedence, pushing every little thing else to the backburner in the meanwhile.
The annual report stated the financial institution plans to reinforce its funds and ecommerce presence via fintech companions and scale up enterprise segments reminiscent of gold loans, farm loans and loans to small and medium enterprises in FY22.
“Overlook all that, our first focus is to stabilise the portfolio and the organisation,” a senior govt near the present administration informed ET, in what may effectively be a mirrored image of the alleged battle between the earlier and present administration.
Ujjivan founder and former managing director Samit Ghosh, who has been introduced again on the financial institution’s board as a further director, declined to remark.
Chugh resigned final month citing private causes. It’s extensively seen that
, the holding agency for the financial institution, was sad with Chugh’s dealing with of asset high quality following the pandemic-led stress. The promoter additionally expressed considerations over excessive attrition with a number of senior and middle-level executives leaving the financial institution.
The financial institution’s gross non-performing property jumped to 9.5% on the finish of June from merely 1% as of March 31, 2020. Attrition price was almost 20%.
Following Chugh’s exit, the group chosen Carol Furtado, who was a founding member of Ujjivan Monetary Companies, as its interim chief govt. Chugh will formally depart the financial institution on September 30.
“We count on FY22 to be a 12 months of affordable progress and stabilisation as we retain our sharp deal with bettering our earnings, sustaining a wholesome portfolio high quality with emphasis on digitisation that might improve our various product choices,” Chugh stated within the annual report for FY21.
The financial institution’s digitalisation course of gained steam throughout his two-year stint.
“Going ahead, we goal to strengthen our end-to-end course of digitalisation efforts and use the facility of digital as a brand new buyer acquisition and repair channel,” the financial institution stated within the annual doc for shareholders. “We may also leverage the facility of analytics for actionable insights for data-driven choice making. We are going to proceed to leverage our full-stack API banking platform to associate with the fintech ecosystem for quicker time to market and modern merchandise and options for our clients,” it stated.
Whereas the primary half of the monetary 12 months for Ujjivan glided by navigating via the pandemic-led disaster compounded by the second wave, the subsequent three-to-four months could be invested in bringing stability on the board and the administration stage. A number of board members together with chairman B Mahapatra Mona Kachhwaha, Ittira Davis and Harish Devarajan had left over the previous few months.
The brand new administration would additionally deal with an imminent reverse merger within the subsequent few months. The financial institution, which completes 5 years of operations on January 31, 2022, is allowed by the Reserve Financial institution of India to reverse merge itself with the holding firm.