Ujjivan Bank to replace loans with certificate deposits

According to the Ujjivan Small Finance Bank it will bring down its cost of funds by up to 150 basis points during the current financial year. It has replaced 75% of its bank loans with borrowings using money market instruments including certificate of deposits. The bank will be issuing 90-day CDs to mutual funds and insurance companies and FDs to corporates, trusts and cooperative banks. On October 7, 2015, Ujjivan received an in-principle approval from the RBI to set up Ujjivan small finance bank (“SFB”) and commenced banking operations in February 2017.