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Informist, Friday, May 8, 2026

 

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--Ujjivan Small Fin Bk to raise up to INR 20 bln via QIP, Pref issue, others 
--Ujjivan Small Fin Bk FY26 total income INR 80.39 bln vs 72.01 bln yr ago 
--Ujjivan Small Finance Bank FY26 PAT INR 6.93 bln vs INR 7.26 bln 
--Ujjivan Small Fin Bk Basel III capital adequacy ratio 21.14% on Mar 31 
--Ujjivan Small Fin Bk net NPA ratio 0.43% on Mar 31 vs 0.57% qtr ago 
--Ujjivan Small Fin Bk gross NPA ratio 2.26% on Mar 31 vs 2.38% qtr ago 
--Ujjivan Small Fin Bk Jan-Mar provisions INR 1.44 bln vs INR 2.65 bln yr ago 
--Ujjivan Small Finance Bank Q4 PAT INR 2.82 bln vs INR 833.9 mln yr ago 
--Ujjivan Small Fin Bk Jan-Mar total income INR 21.85 bln vs 18.43 bln yr ago 
--Analysts saw Ujjivan Small Finance Bank Jan-Mar net profit INR 2.46 bln 
--Ujjivan Small Finance Bank Jan-Mar net profit INR 2.82 bln

 

By Pratiksha

 

NEW DELHI – Beating Street estimates, Ujjivan Small Finance Bank's net profit for the March quarter jumped over three-fold on year due to a sharp decline in provisions and increase in interest income.  

 

The Bengaluru-headquartered bank reported a net profit of INR 2.82 billion for Jan-Mar, up over 238% on year, beating analysts' expectation of INR 2.46 billion. The bottom line was up 52% sequentially. Following the earnings announcement, shares of the lender rose almost 2% at INR 64.13 on the National Stock Exchange, as of 1415 IST. 

 

The small finance bank's provisions for the quarter fell almost 46% on year and 26% on quarter to INR 1.44 billion. 

 

The lender's total income for the quarter under review rose nearly 19% on year to INR 21.85 billion. Sequentially, it was up almost 7%. Other income rose to INR 3.07 billion, up almost 14% on year and around 4% sequentially. The lender's net interest income--the difference between interest earned and interest expended--was up 26% on year and over 9% on quarter at INR 10.92 billion.

 

Total expenses, excluding provisions and contingencies, rose almost 13% on year and 4% on quarter to INR 16.70 billion in the March quarter. The bank's operating expenses were INR 8.85 billion, up over 14% on year and 3% on quarter.

 

The lender's asset quality improved sequentially in the March quarter. The bank's gross non-performing asset ratio declined to 2.26% as on Mar. 31 from 2.38% at the end of December, while the net non-performing asset ratio fell to 0.43% from 0.57% as on Dec. 31.

 

The bank's Basel-II capital adequacy ratio was 21.14% as on Mar. 31, down from 21.62% as on Dec. 31 and 23.10% as on Mar. 31, 2025. For 2025-26 (Apr-Mar), Ujjivan Small Finance Bank reported a net profit of INR 6.93 billion, down nearly 5% on year. Total income for FY26 grew nearly 12% on year to INR 80.39 billion. 

 

On Apr. 13, Reserve Bank of India returned Ujjivan Small Finance Bank's application for a universal bank licence. However, Managing Director and Chief Executive Officer Sanjeev Nautiyal said in a press release that the bank remains committed to its universal banking aspirations and will re-submit its application once it has a well-diversified loan book. "...RBI has acknowledged ongoing efforts towards diversification of our loan portfolio and we shall re-submit our application once we have further demonstrated a well-diversified loan book," Nautiyal said.

 

The lender's gross loan book grew 27% on year and 10% on quarter to INR 406.55 billion in the March quarter, supporting the bottom line. Secured advances grew 44% on year to INR 200.79 billion and comprised 49.4% of the total loan book. 

 

The small finance bank's total deposits rose over 21% on year and 8% on quarter to INR 456.68 billion in the March quarter. Focus on granular deposits led to the current account savings account deposit ratio at 28.6% as on Mar. 31, the lender said. 

 

The bank's net interest margin improved to 8.5% in the March quarter, up 20 basis points on year, primarily due to falling cost of funds, stable yields and optimal liquidity utilisation. "Our growth momentum would continue into FY27 with GLB (gross loan book) growth of around 25%, improving asset quality with Credit Cost between 1.4% to 1.5% of the average GLB," Nautiyal said. "This performance would improve profitability and deliver RoA (return on assets) of around 1.6%."

 

The lender's cost of funds contracted 63 bps on year at 7.0% as on Mar. 31. In order to ensure continued growth trajectory, the small finance bank's board has approved to raise up to INR 20 billion via qualified institutional placement, preferential issue, or any others methods. 

 

On Friday, shares of the bank closed 0.4% lower at INR 62.40.  End

 

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

 

Edited by Tanima Banerjee

 

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