Ujjivan Small Finance Bank Q1 FY26 Earnings: 11% Rise in Loan Book, PAT rises 24% QoQ to ₹103 Crore

Ujjivan Small Finance Bank's gross loan book increased to ₹33,287 crore in Q1FY26, marking an 11% rise year-on-year and 4% growth quarter-on-quarter. A significant shift was observed in the composition of the loan book, with secured loans now accounting for 45.5% of the total portfolio, up from 31.3% in the same quarter last year. The bank also recorded strong disbursement figures for the quarter, reaching ₹6,539 crore, reflecting a robust 24% year-on-year growth.

Ujjivan Small Finance Bank Q1 FY26 Earnings: Asset Quality and Provisions

• Collection efficiency for group and individual loans was strong at 99.3%.
• Gross NPA stood at 2.5%, Net NPA at 0.7% as of June 2025.
• ₹23 crore of accelerated provisions made; overall credit cost at ₹225 crore.

Deposits and CASA

• Deposits increased 19% YoY to ₹38,619 crore.
• CASA deposits stood at ₹9,381 crore, a 13% YoY growth.
• Retail term deposits and CASA together contributed ₹27,883 crore (72% of total).

Profitability

• Net profit (PAT) for Q1FY26 stood at ₹103 crore, up 24% QoQ.
• RoA rose to 0.8%, and RoE increased to 6.7%.
• Other income grew 26% YoY, driven by treasury income.
• Operating cost of funds stayed at 7.6% but is expected to fall due to lower FD and savings rates.

Strategic Developments

• The bank added 1.1 lakh new microbanking customers in Q1.
• 34,000 customers transitioned from group to individual loans and secured products like gold and vehicle loans.
• Fully implemented MFIN Guardrails 2.0 from April 1, 2025.
• RBI’s revised PSL norms (from 75% to 60%) provide flexibility for better portfolio management.

Outlook for FY26

• Ujjivan aims to grow advances by ~20%.
• Expected RoA: 1.2%–1.4%; RoE: 10%–12%.
• Credit cost projected at 2.3%–2.4% of average gross advances.

About Ujjivan Small Finance Bank

Ujjivan SFB serves ~97 lakh customers through 752 branches across 26 states/UTs. It holds deposits worth ₹38,619 crore and a loan book of ₹33,287 crore as of June 2025. It has credit ratings of AA- (Stable) and A1+ from CARE and CRISIL, reflecting its stable performance.

Read More: LIC Ties Up with Govt to Empower Rural Women via Bima Sakhi Yojana.

Ujjivan Small Finance Bank Share Price Movement

As of 3:19 PM IST on July 25, 2025, Ujjivan Small Finance Bank share price (NSE: UJJIVANSFB) was trading at ₹43.17, down 5.56% for the day, with a 52-week high of ₹51.87 and a low of ₹30.88.

Conclusion

Ujjivan Small Finance Bank has shown strong operational and financial performance in Q1FY26, supported by rising secured loans, improving asset quality, and a growing customer base. The bank remains optimistic about FY26 with a focus on sustainable growth, cost control, and expanding its secured loan portfolio.

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