India's Ujjivan eyes lending to small businesses to expand footprint

Ujjivan Small Finance Bank Ltd., which surged 51% on its trading debut last month, is focusing on increased lending to small businesses to expand its footprint and boost profitability.

Shadow banks, strung by a liquidity crisis, aren’t in a position to lend to small shopkeepers, clinics, local government and salaried workers, and Ujjivan has identified seven such segments for lending where demand is high, Managing Director Nitin Chugh said in an interview in Bangalore. Ujjivan is also conducting a pilot on two-wheeler and three-wheeler financing, he added.

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