Ujjivan SFB down 17% after MD, CEO Nitin Chugh quits company; Ujjivan Financial Services also slip 11%

Following the resignation of Nitin Chugh from the Managing Director and Chief Executive Officer position, the shares of Ujjivan Small Finance Bank (SFB) cracked over 17 per cent and touched a new record low of Rs 20.05 per share on the BSE intraday trade on Friday.

According to the exchange filing of Ujjivan SFB, “The Bank has received a letter dated August 18, 2021 from Mr. Nitin Chugh tendering his resignation from the position of Managing Director and CEO of the Bank with effective from close of business hours on September 30, 2021.”

“Chugh’s tenure as Director is co-terminus with his tenure as Managing Director and CEO of the Bank. Therefore, he shall cease to be a Director of the Bank with effect from the aforesaid date,” the small finance bank said in a filing on Friday.

He has confirmed, in his resignation letter, that he is resigning due to personal reasons and there are no material reasons, the bank said.

The SFB had made a stock market debut in December 2019 and raised Rs 750 crore through an initial public offer (IPO) at a price of Rs 37 per share. The scrip had touched a record high of Rs 63 per share on December 12, 2019.  

At around 02:09 pm, the counter was trading over 16 per cent lower to Rs 20.35 per share, near life low level on the BSE, as compared to 0.5 per cent decline in the S&P BSE Sensex today.

Besides SFB, the holding company Ujjivan Financial Services also tumbled near 11 per cent to Rs 181.25 per share, hitting a new 52-week low on the BSE intraday trade today. At around 02:16 pm, the stock was trading weak at life low level as same as the S&P BSE Sensex.

Ujjivan SFB in its June-ended quarter of FY22 had reported a higher-than-expected loss of Rs 230 crore due to elevated provisions.