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Informist, Monday, Sept. 8, 2025

 

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--Ujjivan Small Fin Bk: The pain in microfinance portfolio is behind us 
--Ujjivan Small Fin Bk: Aim for INR 1 tln loan book by FY30 
--Ujjivan Small Fin Bk: Aim for INR 1.2 tln of deposits by FY30 
--Ujjivan Small Fin Bk: Aim to bring CASA ratio to around 35% by FY30 
--Ujjivan Small Fin Bk: May raise INR 20 bln via QIP in next 2 years 
--Ujjivan Small Fin Bk: Aim to open 400 more branches in next 5 years 
--Ujjivan Small Fin Bk: Commercial bk licence application in advanced stage 
--CONTEXT: Comments from Ujjivan Small Fin Bk mgmt in press conference 
--Ujjivan Small Fin Bk: Hope RBI decides on commercial bk licence by Dec
 

 

MUMBAI – Ujjivan Small Finance Bank is hopeful of receiving a commercial bank licence from the Reserve Bank of India by December, Managing Director and Chief Executive officer Sanjeev Nautiyal said in a press conference on Monday. "There have been two, three, four rounds of some additional information that they wanted which has been newly provided to the Reserve Bank of India. As we understand, they may be at an advanced stage of processing and then it will be put up to the committee of relevant officials who will then take a call on our application," Nautiyal said.

 

As part of its growth plan, the bank plans to raise INR 20 billion through qualified institutional placement, Nautiyal said. The fundraise is agnostic to the bank receiving the licence from the RBI, Nautiyal said. 

 

The bank also plans to expand its loan book to INR 1 trillion by the end of 2029-30 (Apr-Mar), Nautiyal said. The deposit base is expected to reach INR 1.2 trillion in the same time period, he said. At the end of June, total deposits of the bank rose by 19% on year to INR 386.19 billion while the gross loan book clocked an 11% on-year rise to INR 332.87 billion.

 

For the low cost current account savings account ratio, the bank has a target of 35% for FY30. Cost to income ratio, the bank aims to keep below 55%. Credit to deposit ratio is expected to be around 88% by FY30, the management said. The net intrerest margin of the bank is expected to sustain at 6-7% till FY30, they said. 

 

Speaking about the troubled microfinance portfolio, Nautiyal said that the pain in the portfolio is a thing of the past now. Owing to the problems, the lender had to make provisions worth INR 2.25 billion in Apr-Jun, a sharp jump from INR 1.10 billion a year ago.

 

In terms of branch expansion, the bank plans to open 400 more branches in the next five years taking the total to around 1,150 branches by the end of FY30. The bank's net profit for the June quarter fell to INR 1.03 billion from INR 3.01 billion a year ago while total expenditure rose 19% on year to INR 15.07 billion. At 1345 IST, shares of the bank were 3.4% higher at INR 44 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Kabir Sharma

Edited by Akul Nishant Akhoury

 

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