Ujjivan Small Fin Bank hits record low; drops 30% in six days

Ujjivan Small Finance Bank tumbled 7.11% to Rs 18.30, extending its losing run to sixth trading session.

Shares of the small finance bank have lost 30.29% in six trading days from its previous closing high of Rs 26.25 on 12 August 2021. The stock hit a record low of Rs 17.8 in intraday today. From its 52-week high of Rs 44.5 hit on 7 January 2021, the stock has lost 59%.

On the BSE, 49.85 lakh shares were traded in the counter so far compared with average daily volumes of 7.50 lakh shares in the past two weeks.

On NSE, 3.44 crore shares were traded so far compared with average daily volumes of 75 lakh shares in the past two weeks.

The counter witnessed selling pressure after Nitin Chugh resigned from the position of managing director and CEO of the bank.

In an exchange filing made on Thursday (19 August 2021), Ujjivan SFB said that it had received a letter dated 18 August 2021 from Nitin Chugh tendering his resignation from the position of managing director and CEO of the bank w.e.f. close of business hours on 30 September 2021. His 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.

On the technical front, the stock's RSI (relative strength index) stood at 8.245. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading below its 50 and 100 days simple moving average placed at 29.12 and 29.35 respectively. These levels will act as crucial resistance zones in near term.

Ujjivan SFB is a mass market focused bank in India, catering to financially unserved and underserved segments. The micro finance bank reported a net loss of Rs 233.48 crore in Q1 FY22 as against a net profit of Rs 54.65 crore in Q1 FY21. Total income declined 7.6% YoY to Rs 716.29 crore during the quarter.

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