Ujjivan Small Finance Bank has ushered in the new financial year with resilient momentum, reporting a 24 per cent quarter-on-quarter rise in profit after tax, touching Rs 103 crore for the quarter ended June 30, 2025.
The growth was anchored in a well-balanced lending strategy, increased traction in secured loans, and steady deposit mobilisation, reflecting the bank’s evolving position in India’s small finance ecosystem.
The bank’s gross loan book expanded to Rs 33,287 crore, an 11 per cent increase from the year-ago period. Of note was the sharp surge in the secured portfolio, which grew 63 per cent YoY, now contributing nearly half of the total loan book.
This strategic diversification into products such as gold loans, vehicle finance, and micro-mortgages underlines Ujjivan’s concerted shift towards asset resilience and lower-risk segments.
On the deposit side, the bank posted a robust 19 per cent YoY growth, reaching Rs 38,619 crore, while CASA balances rose to Rs 9,381 crore, marking a 13 per cent YoY improvement.
Retail term deposits along with CASA accounted for a significant 72 per cent of total deposits, underscoring the bank’s growing retail franchise and customer stickiness.
The cost of funds remained at 7.6 per cent during the quarter, with expectations of a downward trajectory owing to revised deposit rate structures.
Disbursements during the quarter stood at Rs 6,539 crore, up 24 per cent YoY. Micro banking, a traditional strength for Ujjivan, remained steady with group loan disbursements of Rs 3,934 crore.
Impressively, nearly 34,000 borrowers transitioned from group to individual loans, many of whom moved into secured offerings, a transformation the bank sees as central to sustainable portfolio growth.
The quarter also saw Ujjivan complete the full adoption of MFIN Guardrails 2.0, which provided a more measured operating framework.
Despite expectations of a temporary slowdown, the bank continued to see robust customer acquisition and disbursement activity.
Over 1.1 lakh new micro banking customers were onboarded in the quarter, a testament to the bank’s community-level outreach and credit empowerment initiatives.
Asset quality remained under control, with GNPA and NNPA ratios at 2.5 per cent and 0.7 per cent respectively. Collection efficiency in the core loan segments was strong at 99.3 per cent, reinforcing the bank’s focus on prudent underwriting and risk management.
The credit cost for the quarter stood at Rs 225 crore, including an accelerated provision of Rs 23 crore, supporting a healthy provision coverage ratio of 73 per cent.
Sanjeev Nautiyal, Managing Director and CEO, Ujjivan Small Finance Bank expressed confidence in the bank’s growth outlook, stating that the recent regulatory easing on PSL requirements for small finance banks, from 75 per cent to 60 per cent, would provide added headroom to recalibrate the asset mix.
He also welcomed the RBI’s liquidity measures and rate cuts initiated earlier this year, which are expected to ease funding costs and boost demand across interest-sensitive verticals.
Looking ahead, Ujjivan SFB has projected a 20 per cent growth in advances for FY26, with expected RoA ranging between 1.2 per cent and 1.4 per cent and RoE in the band of 10 per cent to 12 per cent.
With a capital adequacy ratio at 22.8 per cent and a daily average liquidity coverage ratio of 156 per cent, the bank remains well-capitalised and liquid to pursue its next phase of calibrated expansion.
Now serving over 97 lakh customers through a network of 752 branches across 26 states and union territories, Ujjivan Small Finance Bank continues to evolve its business model towards inclusive, sustainable, and balanced banking practices, an effort increasingly reflected in both its numbers and narrative.
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