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

Updated on: 25 Jul 2025, 8:59 pm IST
Ujjivan SFB posts 11% YoY loan growth in Q1FY26. PAT rises 24% QoQ to ₹103 crore. Deposits grow 19% YoY to ₹38,619 crore, with CASA ratio at 24.3%.
Ujjivan Small Finance Bank Q1 FY26 Earnings: 11% Rise in Loan Book, PAT rises 24% QoQ to ₹103 Crore
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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.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 25, 2025, 3:27 PM IST

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