Ujjivan Small Finance Bank (USFB) reported its highest-ever quarterly net interest income (NII) of ₹1,000 Crore in Q3 FY26. Disbursements reached a record high of ₹8,293 Crore. Deposits grew by 7.7% QoQ, while the loan book grew by 7.1% QoQ. The bank’s asset quality also improved, with collection efficiency rising and a reduction in non-performing assets.
Financial Highlights for Q3 FY26
Ujjivan Small Finance Bank (USFB) announced robust financial results for the quarter ended December 31, 2025. Key highlights include:
- Gross loan book at ₹37,057 Crore, up 21.6% YoY and 7.1% QoQ.
- Deposits at ₹42,223 Crore, up 22.4% YoY and 7.7% QoQ.
- Highest-ever quarterly NII of ₹1,000 Crore, up 12.8% YoY.
- PAT of ₹186 Crore, up 70.8% YoY.
Asset Quality and Collection
The bank demonstrated improvement in asset quality during the quarter:
- Improved Group and Individual Loan Bucket-X collection efficiency to 99.7%.
- Portfolio at Risk improved to 3.98%, GNPA to 2.39%, and NNPA to 0.58%.
- Provision coverage ratio improved to 76%.
Growth Drivers and Strategy
The strong performance was driven by:
- Growth in secured lending, with the secured book now representing 48.1% of the total loan book.
- Record quarterly disbursements of ₹8,293 Crore.
- Increase in CASA deposits by 33.2% YoY, resulting in a CASA ratio of 27.3%.
Management Commentary
Mr. Sanjeev Nautiyal, MD & CEO of Ujjivan Small Finance Bank, stated that the macroeconomic environment remains conducive, supporting credit growth and improved asset quality. He also highlighted the bank’s focus on acquiring quality new customers and improving engagement with existing customers.
Capital Adequacy and Liquidity
Ujjivan Small Finance Bank maintains a strong capital position and liquidity:
- Capital adequacy ratio at 21.6%.
- Average Daily LCR at 165.6%.
Source: BSE
