Ujjivan Small Finance Bank's shares experienced a 2% increase on November 28, reaching Rs 34.5. This rise was a result of the board's approval to sell non-performing assets and written-off loans worth over Rs 270 crore to an asset reconstruction company.

The bank has successfully sold a stressed loan portfolio, which includes a pool of written-off loans with an outstanding value of Rs 270.35 crore as of September 30, 2024. The sale was made for a consideration of Rs 40.55 crore using the Swiss Challenge Method, a competitive bidding process that allows private entities to secure contracts from the government.

This decision was made in response to the challenges faced by the microfinance sector, which has experienced significant stress and overheating throughout the current financial year.