Regulatory Compliance Response - Ujjivan Small Finance Bank

Summary of Company's Response

Ujjivan Small Finance Bank has provided a comprehensive response to the National Stock Exchange of India Limited regarding a news article query, affirming full compliance with SEBI regulations and explaining the context of their mutual fund distribution business launch.

Date and Nature of Query

Date of Communication: July 10, 2026

Query Date: July 09, 2026 (Ref. No.: NSE/CM/Surveillance/17243)

Nature of Query: The NSE sought clarification on a news item appearing on www.economictimes.com dated July 09, 2026, captioned "Ujjivan SFB enters wealth business, aims Rs 200 crore mutual fund AUM in first year". The exchange requested confirmation under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements.

Company's Clarification on Business Launch and Trading Volume

Sequence of Events in Chronological Order:

  • The authorised Board Committee of the Bank approved the launch and rollout of the mutual fund distribution business on February 5, 2026
  • Mutual Fund Distribution business was officially rolled out for Bank customers in May 2026
  • Mr. Hitendra Jha (Head-Retail Liabilities, TASC and TPP) conducted a face-to-face interview with ET BFSI on June 17, 2026
  • The article was published on July 7, 2026 (actual publishing date)

Trading Volume and Price Movement: The Bank stated it cannot comment on share price movements as shares are freely traded on stock exchanges. The Bank confirmed there were no negotiations with any third party regarding this matter.

Regulatory Compliance with SEBI Regulations

The Bank affirmed full compliance with Regulation 30 of SEBI (LODR) Regulations, 2015, stating: "We have made all disclosures in accordance with applicable laws and regulations to the Stock Exchanges about all the events and information that may have a bearing on the operation/performance of the Bank including all price sensitive information."

The Bank further committed to "continue to comply with applicable laws and regulations and keep the stock exchanges duly informed of all the price sensitive information(s)."

Financial Results Clarification and Materiality Assessment

Reason for Non-Disclosure: The Bank explained that the mutual fund distribution business is expected to generate:

  • Projected AUM of Rs. 200 crore in first year
  • Revenue of ~0.5% to 1% on projected AUM
  • Expected revenue of ~1-2 crores (depending on debt & equity mix)

Materiality Conclusion: The Bank determined this amounts to "insignificant revenue for the Bank of our size, and is not a material development" requiring specific disclosure under Regulation 30.

Material Impact Assessment

The Bank explicitly stated: "the said article has no material impact on the Bank" and "we have no material price sensitive information which warrants any specific disclosure other than those already disseminated to the public."

Topic Tags: Regulatory Response, Business Expansion, Mutual Fund Distribution, SEBI Compliance, Materiality Assessment