Ujjivan Small Finance Bank reported a strong fiscal year 2026, with INR 693 crore in net profit and a robust 21.4% year-on-year deposit growth. The bank continues its strategic pivot toward a balanced, secured loan portfolio, which now accounts for 49.4% of its total assets. Management has outlined plans for continued expansion in digital infrastructure, technology investments, and a branch network increase of approximately 20% for the upcoming financial year.
Fiscal Performance Highlights
For the quarter ended March 31, 2026, Ujjivan Small Finance Bank maintained solid momentum, achieving a quarterly profit after tax (PAT) of INR 282 crore. The bank’s total income for the full financial year 2026 reached INR 8,039 crore, representing an 11.6% increase over the previous year. Net Interest Income (NII) saw significant growth of 26.4% year-on-year, driven by strong loan demand and stabilized product yields.
Strategic Portfolio Diversification
The bank is aggressively pursuing a transition toward a more diversified loan mix, with secured assets reaching 49.4% of the total book, up from 43.5% in the prior year. Key growth drivers include the housing segment, which crossed INR 10,000 crore, and the MSME vertical, which also surpassed the INR 3,000 crore milestone. The bank expects its secured portfolio to exceed 56% by the end of fiscal year 2027.
Future Outlook and Digital Expansion
Looking ahead to FY27, Ujjivan SFB is targeting an overall asset growth of approximately 25%. To support this trajectory, the bank has committed to extensive investments in technology, AI-driven data analytics, and the establishment of roughly 140 new branches. Despite higher planned capital expenditure, the management remains focused on maintaining healthy return ratios, targeting an ROA of around 1.6% for the next fiscal year.
Capital and Asset Quality
The bank’s asset quality remains resilient, with GNPA at 2.27% and an improved PCR of 81%. To bolster its capital adequacy and fund medium-term growth objectives, the Board has approved a fresh equity capital raise of up to INR 2,000 crore, expected to be executed in the second half of the current financial year. This infusion will provide the necessary buffer to navigate evolving market dynamics and support the bank’s universal banking aspirations.
Source: BSE
