Ujjivan Small Finance Bank has announced its financial results for the quarter ended June 2025 (Q1FY26), showcasing strong operational and financial performance across key metrics.

Business Performance Highlights – Q1FY26

Assets

  • The gross loan book stood at ₹33,287 crore, reflecting an 11% year-on-year (YoY) growth and a 4% rise quarter-on-quarter (QoQ).
  • The share of the secured loan book increased significantly to 45.5% as of June 2025, compared to 31.3% in June 2024 and 43.5% in March 2025.

Collection Efficiency and Asset Quality

  • Bucket-X collection efficiency remained strong at 99.3% for both group and individual loans in June 2025.
  • The bank’s asset quality remained stable with Portfolio at Risk (PAR), Gross NPA (GNPA), and Net NPA (NNPA) at 4.8%, 2.5%, and 0.7% respectively, as of June 2025, compared to 4.5%, 2.2%, and 0.5% in March 2025.
  • Accelerated provisioning stood at ₹23 crore, with a provision coverage ratio of 73% as of June 2025.

Deposits

  • Total deposits reached ₹38,619 crore, marking an 18.8% YoY and 2.6% QoQ increase.
  • CASA deposits rose to ₹9,381 crore, up 12.6% YoY, with a CASA ratio of 24.3%.
  • The combined total of Retail Term Deposits and CASA deposits reached ₹27,883 crore, growing 16% YoY.

Financial Performance

  • The bank reported a profit after tax (PAT) of ₹103 crore in Q1FY26, up 24% QoQ.
  • Credit cost for the quarter was ₹225 crore, including ₹23 crore in accelerated provisions.
  • Return on Assets (RoA) and Return on Equity (RoE) stood at 0.8% and 6.7% respectively.

Capital and Liquidity Position

  • The Capital Adequacy Ratio remained strong at 22.8%.
  • Liquidity coverage was robust, with the average daily Liquidity Coverage Ratio (LCR) at 156% for June 2025.

Sanjeev Nautiyal, MD & CEO, Ujjivan Small Finance Bank said, “In Q1FY26, we delivered robust 11% YoY growth in our gross loan book, this was backed with strong momentum across the secured segment, which grew 63% YoY.

The disbursements for the quarter at ₹6,539 Crore, up 24% YoY. Our total deposits grew 19%YoY to ₹38,619 crores. CASA deposits were up 13% at ₹ 9,381 Crore. Retail TD plus CASA deposits stood at ₹27,884 crores, registering a 16% growth YoY and contributing 72% to total deposits. Our cost of funds remained at 7.6% in Q1 and is expected to reduce in upcoming quarters since we have reduced the peak FD rates by 65 basis points, and SA rates have been selectively recalibrated up to 100 basis points.

The MFIN Guardrails 2.0 have been fully adopted by the Bank effective 1st April 2025. While we had anticipated a slower disbursement, we see that the demand scenario continues to improve, and Q1 disbursement in Group Loan was 2% higher than Q4.

We stay aligned to this new operating framework and are focusing on deeper existing customer engagement and opportunities to acquire new customers.

In Micro Banking, nearly 1.1 lakh new customers were added in Q1 and nearly 34,000 customers were graduated from group loan to individual lending and also migrated substantial customers to secured products of Gold, Vehicle and Micro Mortgages, a testament to our efforts in nurturing credit-worthy borrowers and driving sustainable growth.

The recent regulatory change of reducing PSL requirement for SFBs from 75% to 60% enhances flexibility to calibrate portfolio mix.

The Reserve Bank of India took various steps starting February’25 including reduction of policy repo rate and continuous liquidity infusion. We believe these measures would bring down the cost of funds and increase demand in rate sensitive segments.

PAT for Q1 at ₹103 Crore is up 24% QoQ.  RoA increased 12 bps to 0.8% and RoE increased114 bps at 6.7%. Other income saw robust growth of 26% YoY lead by treasury income. Credit Cost was lower QoQ at ₹225 Crore including accelerated provision of ₹23 Crore.

For FY26 we expect to grow advances around 20% with a credit cost in the range of 2.3% to 2.4% of average gross advances. RoE to be around 10% to 12% and RoA to be around 1.2% to 1.4%.