The Reserve Bank of India has approved Carol Furtado's appointment as interim chief executive officer of Ujjivan Small Finance Bank following the sudden resignation of MD & CEO Sanjeev Nautiyal. According to The Economic Times, the RBI's approval is for three months or until a new MD takes charge, whichever is earlier. The appointment follows Nautiyal's resignation citing health grounds, with the former managing director of State Bank of India taking charge of Ujjivan on July 1, 2024 for a three-year term. The bank's board accepted Nautiyal's request for early retirement at its meeting on Tuesday and approved Furtado's interim appointment, subject to RBI approval. Nautiyal ceased to be MD & CEO and key managerial personnel from September 1, with the bank's board initiating the process of identifying Nautiyal's successor and submitting its recommendation to the RBI in due course.
Nautiyal ceased to be MD & CEO and key managerial personnel from September 1, with the bank's board accepting his early retirement request at its meeting on Tuesday. As reported by The Economic Times, Nautiyal sought early retirement through an email sent on the evening of August 31, citing health issues. He will remain on leave during the three-month notice period and formally retire from the bank on November 30, according to the bank's exchange filing. A bank official noted during the analyst call that the bank would like to make better succession planning in the future. "We would like to make better succession planning in the future," a bank official said in a hurriedly arranged analyst call following the board meeting.
Carol Furtado brings more than three decades of banking experience across business, strategy, operations, people and institutional functions. According to The Economic Times, she has been part of the leadership team that laid the foundation of Ujjivan and has contributed to business growth and organisational development. Furtado was appointed as Executive Director and Whole-Time Director at Ujjivan Small Finance Bank and has been part of the bank's leadership team through its growth and transformation. During her current role as executive director, she has contributed to business growth and organisational development. At the analyst call, Furtado expressed confidence about business continuity during the transition period. "We remain confident about business continuity," Furtado said at the analyst call. The bank's board noted that the bank's leadership development initiatives and robust succession planning ensure that the organization remains well-equipped to address current operational needs and manage this transition period seamlessly.
The leadership transition has resulted in significant market volatility, with Ujjivan SFB shares plunging 10% in two trading sessions, extending the decline from the initial 6% drop. According to Moneycontrol, the stock was quoted at ₹62.41 per share on the NSE, down 4.51% as of around 1:20 pm on Wednesday. The shares had risen 2% on Monday before beginning their decline following the board's announcement of Nautiyal's early retirement. The share price decline reflects investor concerns about the sudden leadership change and the ongoing succession planning process. The stock had risen over 18% year-to-date and 45.28% in the last 12 months, showing strong performance despite recent volatility. The extended decline demonstrates continued market uncertainty about the transition.
Despite the leadership change, ICICI Securities maintains a positive outlook on Ujjivan Small Finance Bank, with analysts projecting potential rally up to 38% for the stock. As per ICICI Securities research report dated September 2, 2026, the bank remains confident of meeting its FY27 guidance despite the MD transition. The bank expects Return on Assets (RoA) to remain at 1.8-2%, driven primarily by operating leverage and lower credit costs, with advances growth at ~25% YoY in FY27. Net interest margin is expected to remain around current levels of 8.5%, while the bank has guided for credit cost of 0.9-1% in FY27, with ICICI Securities believing it would settle at the lower end of the guidance. The bank is adequately capitalised to sustain growth momentum, though analysts note key risks include lower-than-expected margins and slower-than-expected AUM growth, particularly due to slow growth in unsecured portfolio. ICICI Securities has retained its BUY rating with an unchanged target price of ₹90 based on 2x Sep'27E BVPS.
