Ujjivan Small Finance Bank Limited has announced a virtual investor meeting with Cusana Capital, scheduled for March 26, 2026. The bank has informed both the National Stock Exchange of India Limited and BSE Limited about this upcoming engagement under Regulation 30 of SEBI (LODR) 2015.

Meeting Details

The investor/analyst meeting has been organized with specific parameters that ensure transparency and compliance with regulatory requirements.

Regulatory Compliance and Transparency

The bank has emphasized its commitment to regulatory compliance by making several important disclosures. The meeting was finalized at shorter notice, and the bank has proactively informed the stock exchanges to maintain transparency. Ujjivan Small Finance Bank has explicitly confirmed that no unpublished price sensitive information will be shared during the meeting, ensuring adherence to insider trading regulations.

Operational Flexibility

The bank has noted that meeting schedules may be subject to change due to any exigency on the part of either the bank or the counterparty. This provision allows for operational flexibility while maintaining professional commitments. The intimation has been made available on the bank's official website at www.ujjivansfb.bank.in , ensuring broader accessibility for stakeholders.

The communication was signed by Sanjeev Barnwal, Company Secretary & Head of Regulatory Framework, on March 25, 2026, demonstrating the bank's structured approach to investor relations and regulatory compliance.

Ujjivan Small Finance Bank has received a rating reaffirmation from Care Ratings Ltd, maintaining its CARE AA- Stable rating across multiple facilities worth ₹11,000 crore. The rating action, announced through a press release dated March 23, 2026, underscores the bank's resilient financial position despite ongoing challenges in the microfinance sector.

Rating Reaffirmation Details

Care Ratings has reaffirmed its ratings across three key categories of the bank's facilities:

The reaffirmation considers the bank's comfortable capitalisation and improving scale of its loan book, supported by increasing diversification away from traditional microfinance operations.

Financial Performance and Capitalisation

The bank maintains strong capitalisation metrics despite recent profitability pressures. As of December 31, 2025, the overall Capital Adequacy Ratio stood at 21.62%, with Tier-I CAR at 20.13%. This comfortable capitalisation is primarily supported by internal accruals and periodic equity infusions, including ₹475 crore raised in FY23.

The bank's advances grew by 15% in 9MFY26, recovering from modest growth in FY25 due to stress-driven contraction in the micro-banking segment.

Strategic Portfolio Diversification

Ujjivan Small Finance Bank is actively reducing its reliance on micro-banking through strategic portfolio diversification. The share of micro-banking loans declined to 52% as of December 31, 2025, from 70% as of March 31, 2024. Correspondingly, secured loans increased to 48% of the loan book from 30%, with management targeting 60-65% over the medium term.

The non-micro-banking portfolio comprises housing loans (22%), MSME loans (8%), loans to financial institutions (7%), micro mortgage (4%), and other segments (7%). The bank benefits from geographical diversification across 24 states and two Union Territories, with the top three states accounting for 37% of advances.

Asset Quality and Profitability Challenges

The bank faced asset quality pressures in FY25 and 9MFY26, primarily due to stress in the micro-banking portfolio. Slippages increased to 4.21% in FY25 and 3.60% in 9MFY26, compared to 2.25% in FY24. Despite higher slippages, the bank maintained Gross NPA and Net NPA below 3% and 1% respectively, aided by write-offs, NPA sales to asset reconstruction companies, and accelerated provisioning.

Profitability moderated significantly, with Return on Total Assets declining to 1.66% in FY25 and further to 1.10% in 9MFY26, compared to 3.50% in FY24. This decline resulted from elevated credit costs, interest reversals linked to micro-banking stress, margin compression from increasing secured loan mix, and higher operating expenses.

Liquidity and Deposit Profile

The bank maintains adequate liquidity with average Liquidity Coverage Ratio and Net Stable Funding Ratio at 160% and 124% respectively for Q3FY26, well above the regulatory requirement of 100%. However, the CASA ratio remained relatively modest at 27.32% as of December 31, 2025, which continues to be lower than peers in the small finance bank segment.

Deposits grew by 22% year-on-year to ₹42,223 crore, with CASA and retail term deposits constituting 70% of total deposits. The bank is focusing on building a granular retail deposit base while gradually reducing reliance on wholesale term deposits.

Source: None/Company/INE551W01018/b9531355-75fb-4676-938e-bc6135c2b166.pdf