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Informist, Thursday, Jul. 23, 2026

 

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--Ujjivan Small Finance Bank Apr-Jun net profit INR 3.17 bln 
--Analysts saw Ujjivan Small Fin Bank Apr-Jun net profit INR 2.83 bln 
--Ujjivan Small Fin Bk Apr-Jun total income INR 22.81 bln 
--Ujjivan Small Fin Bk Apr-Jun net profit INR 3.17 bln vs 1.03 bln yr ago 
--Ujjivan Small Fin Bk Q1 total income INR 22.81 bln vs INR 18.68 bln yr ago 
--Ujjivan Small Fin Bk Apr-Jun provisions INR 1.27 bln vs INR 2.25 bln yr ago 
--Ujjivan Small Fin Bk gross NPA ratio 2.16% on Jun 30 vs 2.26% qtr ago 
--Ujjivan Small Fin Bk net NPA ratio 0.34% on Jun 30 vs 0.43% qtr ago 
--Ujjivan Small Fin Bk basel III capital adequacy ratio 20.36% on Jun 30 
--Ujjivan Small Fin Bk Apr-Jun NIM 8.5%, down 1 bps on qtr 
--Ujjivan Small Fin Bk revises guidance for FY27 return on assets to 1.8%-2% 
--Ujjivan Small Fin Bk ups guidance for FY27 RoA to 1.8%-2% from 1.6?rlier 
--Ujjivan Small Fin Bk retains guidance for FY27 advances growth at 25% 
--Ujjivan Small Fin Bk Q1 NII at INR 11.86 bln vs INR 8.56 bln yr ago 
--Ujjivan Small Fin Bk Apr-Jun credit cost 0.9% of average total assets 
--Ujjivan Small Bank expects FY27 credit cost at 0.9%-1% of avg total assets 

 

By Janaki Venugopalan

 

MUMBAI – Ujjivan Small Finance Bank Ltd. reported a three-fold year-on-year increase in its June quarter net profit because of a sharp fall in its provisions. A surge in the bank's net interest income also supported the net profit.

 

The bank's net profit for the June quarter rose to INR 3.17 billion from INR 1.03 billion for the year-ago period. The bottom line was higher than analysts' consensus estimate of INR 2.83 billion. The small finance bank's total income for the June quarter rose over 22% on year to INR 22.81 billion. The total income rose more than 4% sequentially.

 

The Bengaluru-based small finance bank reported a 43?cline in provisions from the year-ago quarter. Sequentially, the provisions fell 11%. The small finance bank's provisions for the quarter were INR 1.27 billion.

 

Ujjivan Small Finance Bank's net interest income rose over 38% on year to INR 11.87 billion. The bank reported a net interest margin of 8.5%, down a solitary basis point from the trailing quarter.

 

The lender reported a capital adequacy ratio of about 20.36% for the June quarter, down from 22.77% a year ago and 21.14% in the March quarter. It reported net non-performing assets of INR 1.42 billion in the June quarter, down from INR 1.70 billion a quarter ago. The bank's net non-performing assets decreased over 37% from INR 2.26 billion in the year-ago quarter. The gross non-performing assets for the quarter were INR 9.24 billion, up from INR 9.17 billion a quarter ago and INR 8.34 billion a year ago. The small finance bank's provision coverage ratio was at 85% as of Jun. 30, up from 81% as of Mar. 31.

 

The lender revised its guidance for return on assets for the financial year 2026–27 (Apr-Mar) to 1.8-2.0% from 1.6%. It retained its previous guidance for growth in advances at 25%. Ujjivan Small Finance expects its credit cost to be 0.9-1.0% of the average total assets in FY27. In the June quarter, the credit cost was 0.9% of the average total assets and the return on assets was 0.53%.

 

The small finance bank's total deposits were at INR 481.29 billion in the June quarter, up nearly 25% on year and over 5% on quarter. It reported a growth of over 37% on year in current account savings account to INR 129.30 billion.

 

Ujjivan Small Finance's secured loan book was 50.4% of the total loan book in the June quarter, up from 49.4% in the March quarter. Its gross loan book grew 6% sequentially to INR 429.03 billion. The total secured loan book was INR 216.38 billion. Gold and vehicle loans amounted to INR 10.20 billion and INR 10.36 billion, respectively. Gold loans rose nearly 250% on year and 33% on a sequential basis while vehicle loans grew 85% on year and 10% from the trailing quarter.

 

The lender's loan book has historically been led by microfinance. However, in recent years, it has diversified and grown its secured asset book, including loans for housing, vehicles, gold loans, and loans to micro, small, and medium enterprises while reducing its exposure to unsecured loans.

 

"Despite ongoing global market uncertainties, domestic high-frequency economic indicators have shown stability," Ujjivan Small Finance Executive Director Carol Furtado said in a press release. "RBI maintained its policy repo rate at 5.25% with a neutral stance, projecting a recalibrated real GDP growth for FY27 at 6.6% and inflation staying within defined band with full year of 5.1%, while noting that the banking sector remains resilient with healthy credit demand and steady deposits."

 

Thursday, the lender's shares ended at INR 568.80 apiece on the National Stock Exchange, up nearly 2% from Wednesday. Ujjivan Small Finance Bank announced its June quarter results during market hours.  End

 

Edited by Rajeev Pai

 

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