Ujjivan Small Finance Bank Reports Q4FY26 Results with Total Deposits of ₹45,661 Cr

Ujjivan Small Finance Bank has announced its Q4FY26 quarterly results under Regulation 30, showcasing robust financial performance across all key business segments. The bank delivered strong growth momentum with significant improvements in deposits, loan book expansion, and disbursement activities during the quarter ended March 31, 2026.

Deposit Growth and CASA Performance

The bank achieved impressive deposit mobilization with total deposits reaching ₹45,661 Cr, representing a substantial growth of 21.30% year-over-year from ₹37,630 Cr in Q4FY25. Quarter-over-quarter growth stood at 8.10% from ₹42,223 Cr in Q3FY26.

Deposit Metrics	Mar 31, 2026	Mar 31, 2025	YoY Growth	Dec 31, 2025	QoQ Growth
Total Deposits (₹ Cr)	45,661	37,630	+21.30%	42,223	+8.10%
CASA (₹ Cr)	13,055	9,612	+35.80%	11,535	+13.20%
CASA Ratio (%)	28.60%	25.50%	-	27.30%	-
Credit-Deposit Ratio (%)	89.00%	85.40%	-	87.80%	-

Gross Loan Book Expansion

The bank's gross loan book expanded to ₹40,655 Cr as of March 31, 2026, marking a growth of 26.60% year-over-year from ₹32,122 Cr. The secured book component reached ₹20,081 Cr, representing 49.40% of the total loan portfolio and growing by 43.60% YoY.

Loan Segments (₹ Cr)	Mar 31, 2026	Mar 31, 2025	YoY Growth	Dec 31, 2025	QoQ Growth
Gross Loan Book	40,655	32,122	+26.60%	37,057	+9.70%
Group Loan (GL)	14,696	13,090	+12.30%	13,685	+7.40%
Individual Loan (IL)	6,013	5,182	+16.00%	5,687	+5.70%
Housing	10,477	7,308	+43.40%	9,560	+9.60%
MSME	3,230	2,046	+57.90%	2,865	+12.80%
Gold Loan	769	196	+292.20%	557	+38.10%

Disbursement Performance

Overall disbursements for Q4FY26 reached ₹9,763 Cr, demonstrating strong growth of 31.40% year-over-year from ₹7,428 Cr in Q4FY25. The quarter-over-quarter growth was 17.70% from ₹8,293 Cr in Q3FY26.

Disbursement Segments (₹ Cr)	Q4 FY26	Q4 FY25	YoY Growth	Q3 FY26	QoQ Growth
Overall Disbursement	9,763	7,428	+31.40%	8,293	+17.70%
Group Loan (GL)	3,872	2,787	+38.90%	3,464	+11.80%
FIG	1,565	1,064	+47.10%	895	+74.90%
Gold Loan	418	115	+263.40%	308	+35.70%
Vehicle Loan	235	140	+68.20%	274	-14.10%

Asset Quality Metrics

The bank maintained healthy asset quality indicators with Portfolio at Risk (PAR) improving to 3.54% as of March 31, 2026, compared to 4.54% in the previous year and 3.98% in the previous quarter. Gross Non-Performing Assets (GNPA) stood at 2.27%. The bank's micro banking collection efficiency remained robust at 99.81% for March 2026.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.63%	+1.06%	-3.86%	+14.18%	+59.81%	+77.36%

Ujjivan Small Finance Bank has received a revised rating from HSBC, which has cut the target price while maintaining its positive outlook on the stock. The brokerage's updated assessment reflects broader concerns about the banking sector amid geopolitical tensions.

HSBC Rating and Target Price Revision

HSBC has maintained its Buy rating on Ujjivan Small Finance Bank but reduced the target price significantly. The revised assessment shows the impact of external factors on the bank's projected performance.

Parameter	Previous	Revised
Rating	Buy	Buy
Target Price	Rs 78.00	Rs 67.00
Price Cut	-	Rs 11.00

Key Concerns and Outlook

The brokerage highlighted several factors influencing its revised assessment. The Middle-East conflict has created uncertainties that are expected to weaken the bank's earnings outlook across multiple parameters.

HSBC anticipates cuts to:

AUM (Assets Under Management) growth projections
Net interest margins
Earnings per share estimates

Risk Factors and Challenges

The analysis identified emerging pressures that could impact the bank's performance. HSBC pointed to liability pressures and potential asset-quality risks as areas of concern for the small finance bank sector.

These factors reflect broader challenges facing financial institutions amid the current geopolitical environment and its potential spillover effects on the Indian banking sector.

Sector Preferences and Investment Strategy

HSBC outlined its broader sectoral preferences in the financial services space. The brokerage expressed a clear preference for private sector banks over public sector undertakings (PSU banks) in the current market environment.

The firm's favored picks include:

NBFCs: Cholamandalam Investment and Finance, Shriram Finance
Defensive Option: LIC Housing Finance

This positioning reflects HSBC's strategy of focusing on institutions with stronger fundamentals and better resilience to current market challenges while maintaining selective exposure to the small finance banking segment through Ujjivan Small Finance Bank.