Fn: Ujjivan
Ujjivan Small Finance Bank has announced its financial results for the quarter ended March 2026, reporting strong growth in deposits, loan disbursements, profitability, and asset quality.
Managing Director and CEO Sanjeev Nautiyal said the Indian economy continues to demonstrate resilience and is projected to grow by 6.9% in FY27, according to the Reserve Bank of India. He noted that the outlook is supported by strong domestic fundamentals, government initiatives, and adequate liquidity, despite risks arising from geopolitical tensions, oil price volatility, supply chain disruptions, and weather-related inflationary pressures.
He said the Reserve Bank of India had returned the bank’s application for voluntary transition into a universal bank on April 13, while acknowledging the bank’s efforts toward diversifying its loan portfolio. The bank plans to reapply after further strengthening its diversified loan book and remains committed to its universal banking aspirations.
The bank reported a 21.4% year-on-year increase in deposits, which rose to ₹45,668 crore, while the CASA ratio stood at 28.6% as of March 2026.
Its Gross Loan Book (GLB) grew 26.6% year-on-year to ₹40,655 crore, driven by record quarterly disbursements of ₹9,811 crore. The secured loan portfolio increased 43.5% year-on-year to ₹20,079 crore, accounting for 49.4% of the total loan book.
The bank also reported growth in newer business segments, including gold, vehicle, and agriculture loans, which now contribute around 6% of the loan mix compared to 3% in March 2025.
Asset quality improved during the quarter, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) declining to 2.27% and 0.43%, respectively. The Provision Coverage Ratio improved to 81%.
Net Interest Margin improved to 8.5%, while the cost of funds declined to 7%. Net Interest Income for the quarter rose 26.4% year-on-year to ₹1,092 crore.
Profit After Tax for Q4FY26 stood at ₹282 crore, registering a 238.2% year-on-year increase. Return on Assets and Return on Equity stood at 2.1% and 17.2%, respectively.
The bank expects its growth momentum to continue in FY27, targeting around 25% growth in the Gross Loan Book and improved asset quality. To support future expansion, the board has approved an equity capital raise of up to ₹2,000 crore.
