Ujjivan SFB Q3 FY26 Earnings Results: Record NII At ₹1,000 Crore, PAT Jumps 71%

Ujjivan Small Finance Bank reported a solid performance for the quarter ended December 2025 (Q3 FY26). The bank recorded its highest-ever quarterly Net Interest Income (NII) of ₹1,000 crore, reflecting strong core income growth.

Profit after tax (PAT) for the quarter stood at ₹186 crore, registering a sharp 70.8% year-on-year rise, supported by better margins, controlled costs and improving asset quality.

Loan Book And Disbursements Hit New High

The gross loan book rose 21.6% YoY to ₹37,057 crore, driven by robust lending across both secured and unsecured segments. Quarterly disbursements touched a record ₹8,293 crore, up 54.7% YoY.

The bank continued its diversification strategy, with the secured loan book jumping 48.7% YoY to ₹17,825 crore. Secured loans now form 48.1% of the total loan book, compared with 39.3% a year ago.

Deposits Grow Faster Than Loans

Deposits remained strong at ₹42,223 crore, up 22.4% YoY and 7.7% QoQ, outpacing loan growth. CASA deposits increased 33.2% YoY to ₹11,535 crore, keeping the CASA ratio healthy at 27.3% for the second straight quarter.

The cost of funds declined to 7.09%, helped by better liquidity management and earlier deposit rate cuts.

Improving Asset Quality

Asset quality showed steady improvement during the quarter. GNPA declined to 2.39% and NNPA to 0.58%, while Portfolio at Risk fell below 4%. The provision coverage ratio improved to 76%, and collection efficiency touched 99.7% in December 2025.

Margins, Returns, and Capital Position

Net Interest Margin expanded by 33 bps to 8.23% in Q3 FY26. Return ratios also strengthened, with RoA at 1.5% and RoE at 11.5%. Capital adequacy remained comfortable at 21.6%, supported by strong liquidity buffers.

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Management Commentary

MD & CEO Sanjeev Nautiyal said the bank benefited from a supportive macro environment and disciplined growth strategy. Lower funding costs, a better product mix and improved collections helped drive profitability and strengthen returns.

Ujjivan Small Finance Bank Share Price Movement

Ujjivan Small Finance Bank share price (NSE: UJJIVANSFB) was trading at ₹61.95, up ₹4.18 or 7.24%, in afternoon trade on January 22. The stock opened at ₹58.58, touched a 52-week high of ₹62.19, and slipped to an intraday low of ₹58.25. Ujjivan SFB has a 52-week range of ₹30.88–₹62.19, indicating a strong recovery from its yearly low, while the bank does not currently offer a dividend.

Conclusion

Ujjivan Small Finance Bank delivered a strong Q3 FY26 with record NII of ₹1,000 crore, healthy profit growth and improving asset quality. With rising secured lending, strong deposits and solid capital buffers, the bank appears well placed for sustainable growth in the coming quarters.

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