IIFL Securities initiates 'buy' on Ujjivan Small Finance Bank, target price Rs 56

IIFL Securities has initiated coverage on Ujjivan Small Finance Bank with a buy rating and target price of Rs 56. Key profitability drivers would be elevated momentum in loan growth, improving liability profile and operating leverage, said IIFL Securities. This would enable USFB to deliver 2% plus RoA/18% sustainable RoE over FY20-22, said IIFL Securities. Business risks would be mitigated by further product diversification, traction in retail deposits and ability to protect NIMs, said IIFL Securities. Shares of Ujjivan Small Finance Bank ended up 0.2% at Rs 48.85 on Tuesday.