Ujjivan Small Finance Bank announced its financial performance for the quarter ended June, 2026.
Carol Furtado, Executive Director, Ujjivan Small Finance Bank said “Despite ongoing global market uncertainties, domestic high-frequency economic indicators have shown stability.
RBI maintained its policy repo rate at 5.25% with a neutral stance, projecting a re-calibrated real GDP growth for FY27 at 6.6% and inflation staying within defined band with full year of 5.1%, while noting that the banking sector remains resilient with healthy credit demand and steady deposits.
The bank delivered another quarter of diversified business growth along with branch expansion, taking branch count to 814 as of Jun’26.
Deposit grew by 24.6% YoY/ 5.4% QoQ to ₹48,129 Crore and Gross Loan Book reached ₹42,903 Crore, growing 28.9% YoY /5.5% QoQ.
In a tight liquidity scenario, we maintained comfortable CD Ratio at around 89%. To adjust for evolving market scenario, we effected rate increases on key buckets in line with our intended ALM outcome.
CASA Deposit grew to ₹12,930 Crore, up 37.8% YoY. Deposit customer initiatives continue gaining traction, led by strong Ivory programme growth. Improved insurance cross-sell, rising mutual fund adoption through digital channels, and the upcoming co-branded credit card enhance engagement.
The secured loan portfolio delivered strong momentum in Q1FY27, growing 42.7% YoY / 7.8% QoQ to ₹21,638 crore, accounting for 50.4% of the gross loan book. Quarterly disbursements increased 41.4% YoY to ₹9,245 crore.
The micro banking portfolio grew 16.8% YoY in Q1 to ₹21,371 crore, supported by robust Bucket X collection efficiency of 99.68% and new customer acquisition of 1.72 lakh. Vehicle finance and gold loan portfolios crossed the ₹1,000 crore milestone.
Housing comprising of Affordable Housing Loans and Micro Mortgage grew 40.8% YoY to ₹11,210 Cr and MSME grew 54% YoY to ₹3,470 Cr. Bank level asset quality strengthened with lower GNPA/NNPA to 2.17% / 0.34% and improved provision coverage ratio of 85%.
Net Interest Margin (NIM) improved to 8.5%, up 80 bps YoY with record NII at ₹1,186 Cr. Cost to Income improved to 62.0% down 497 bps YoY resulting in record PPoP at ₹548 Cr.
PAT stood at ₹317 Crore up 206.7% YoY. RoA at 2.2%, up 131 bps YoY with RoE at 18.2% up 1,145 bps YoY.
Strong performance across asset products has more than offset macroeconomic headwinds, reinforcing confidence in achieving the FY27 asset growth target of 25%. Investments in future capacity building through branch expansion, branding initiatives, and enhanced technology and analytics capabilities began ramping up towards the end of Q1 and will continue through FY27.
However, the delayed commencement of these expenses, combined with ongoing operating efficiency gains, is expected to reduce FY27 operating expenses to around 6.4% of average assets, lower than previously anticipated.
Asset quality trends remain encouraging, with credit cost at 0.9% and absolute slippages lower than expected during the quarter.
Consequently, FY27 credit cost guidance has been revised to 0.9%–1.0% of Average Total Assets. Our FY27 RoA guidance is upgraded to 1.8% to 2.0%.
