Ujjivan SFB Shares Fall 10% in Two Days: Here's Why

Bank shares extended their decline on September 2, falling for the second consecutive session and taking the stock's two-day loss to around 10%. The stock came under pressure after the bank reported a decline in its August business update, with deposits and advances showing moderation. The selling pressure also comes amid concerns over the bank's growth trajectory and the broader outlook for small finance banks. Investors are closely tracking the lender's deposit mobilisation, credit growth and asset quality as key indicators for its future performance. The August business update provides an early indication of the bank's operating trends ahead of its quarterly results. The recent weakness in the stock has therefore brought renewed focus on whether the moderation in business growth will persist and how it could affect the bank's earnings outlook. Market participants will also watch upcoming disclosures for further clarity on loan growth, deposits and asset quality.