Ujjivan Small Finance Bank Tanks Over 6% in Morning Trade as CEO Sanjeev Nautiyal Retires Early on Health Grounds

Mumbai, Sep 2: Shares of Ujjivan Small Finance Bank (UJJIVANSFB) have fallen as much as 6.06 per cent in trade on Wednesday to an intraday low of Rs 61.40, before paring some of those losses to trade at Rs 62.82, down Rs 2.54, or 3.89 per cent, from a previous close of Rs 65.36, a day after the bank said its Managing Director and Chief Executive Officer, Sanjeev Nautiyal, had sought early retirement citing health issues. The stock opened marginally higher at Rs 65.37, near its previous close, and touched an intraday high of Rs 65.49 within the first few minutes of trade before the sell-off set in, with the volume-weighted average price so far at Rs 62.52. Trade is still underway at the time of writing. 

Intraday Trade 

The stock’s intraday chart shows the counter holding close to its opening level of Rs 65.37 briefly before falling sharply through the morning to the day’s low of Rs 61.40. It has since staged a gradual recovery, climbing back to trade in a narrow band of Rs 62.50 to Rs 63.00 through midday, with the pace of decline easing as the session progresses. The order book currently shows sell-side interest still marginally ahead of buyers, with sell quantity of 16,33,652 shares accounting for 53.71 per cent of total traded quantity against buy quantity of 14,08,087 shares, or 46.29 per cent, figures that could shift as trading continues through the rest of the day. 

Ujjivan SFB CEO Sanjeev Nautiyal Retires Early Citing Health Issues; Carol Furtado Named Acting MD & CEO 

Ujjivan Small Finance Bank’s Managing Director and Chief Executive Officer, Sanjeev Nautiyal, has opted for early retirement on health grounds, the lender informed stock exchanges. Nautiyal, who took charge as MD and CEO on July 1, 2024, emailed the bank on August 31 seeking early retirement with a three-month notice period, and the board approved his request at a meeting on September 1. He ceased to be MD, CEO and key managerial personnel with effect from September 1, and will remain on leave until his notice period expires on November 30, when he formally retires. 

The board has appointed Executive Director Carol Furtado as acting MD and CEO with effect from September 1, subject to approval from the Reserve Bank of India. Nautiyal is the fourth full-time MD and CEO to exit Ujjivan Small Finance Bank since it began banking operations in 2017, and the third to leave before completing a full sanctioned tenure, after Nitin Chugh’s resignation in 2021 and Ittira Davis’s early exit in 2024. 

Why It Matters 

The sudden leadership change comes at a sensitive time for Ujjivan Small Finance Bank, which has been navigating slower profit growth, rising provisioning costs in its microfinance book, and a pending application before the RBI to convert into a universal bank. A fourth CEO exit in under a decade adds to concerns around management continuity, even as the board has expressed confidence in its succession-planning framework. This abrupt change at the top could well be one of the reasons behind the stock’s sharp fall in Wednesday’s session, though the bank has not commented on any read-through to near-term business performance. 

Outlook 

Investors will now watch for the RBI’s decision on Furtado’s appointment as acting MD and CEO, as well as the timeline for identifying a permanent successor to Nautiyal. With the stock still trading well below its previous close even after paring some of its intraday losses, the elevated sell-side volumes seen so far suggest leadership uncertainty could keep weighing on sentiment as the session, and the near term, play out, even as the bank’s underlying business metrics remain in focus for investors tracking the counter. 

Source

•  NSE
• BSE data
• https://www.nseindia.com/get-quote/equity/UJJIVANSFB/Ujjivan-Small-Finance-Bank-Limited