Ujjivan Small Finance Bank has continued its employee engagement initiatives with another significant ESOP allotment. The bank's Stakeholders Relationship Committee approved the allotment of equity shares under its Employee Stock Option Plan 2019, demonstrating the bank's ongoing commitment to aligning employee interests with long-term organizational growth.

Latest ESOP Allotment Details

The most recent allotment was approved through a resolution passed on January 04, 2026 at 08:46 AM. The key parameters of this allotment are:

Impact on Bank's Capital Structure

The allotment has resulted in an increase in the bank's paid-up capital:

Regulatory Compliance and Listing Status

The bank has already received in-principal approval from both NSE and BSE for listing these shares and is currently in the process of applying for final listing approval. This disclosure has been made in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Stock Exchange Communication

The bank formally communicated this development to both stock exchanges through official correspondence:

Strategic Implications

The continued ESOP allotments reflect Ujjivan Small Finance Bank's strategic focus on employee retention and motivation. By providing employees with equity participation opportunities, the bank aims to foster a culture of ownership that aligns individual performance with organizational success. These initiatives are particularly significant in the competitive banking sector, where talent retention remains crucial for sustained growth and market positioning.

The intimation has also been made available on the bank's official website at www.ujjivansfb.bank.in , ensuring transparency and accessibility for all stakeholders.

Ujjivan Small Finance Bank (USFB) has delivered a strong performance in Q2, marked by significant improvements in asset quality, deposit growth, and overall financial metrics. The bank's strategic focus on diversification and prudent risk management has yielded positive results, positioning it well for sustained growth.

Key Highlights

• Total deposits rose 15.1% year-on-year to ₹39,211 crore
• CASA deposits crossed ₹10,000 crore for the first time, growing 22.1% annually
• Highest-ever quarterly disbursements of ₹7,932 crore, up 48% year-on-year
• Gross loan book grew 14% to ₹34,588 crore
• Net interest margin improved to 7.9% from 7.7% in the previous quarter
• Profit After Tax (PAT) stood at ₹122 crore

Deposit Growth and CASA Performance

USFB's deposit base showed robust growth, with total deposits increasing by 15.1% year-on-year to ₹39,211 crore. The bank achieved a significant milestone as CASA deposits crossed the ₹10,000 crore mark for the first time, registering a strong 22.1% annual growth to reach ₹10,783 crore. This improvement in CASA ratio reflects the bank's efforts to enhance its low-cost deposit base.

Loan Book Expansion and Asset Quality

The bank reported its highest-ever quarterly disbursements of ₹7,932 crore, marking a substantial 48% year-on-year increase. This strong disbursement growth contributed to a 14% expansion in the gross loan book, which stood at ₹34,588 crore. Notably, the secured loan portfolio reached 47% of the total book, aligning with the bank's strategy to diversify its asset mix.

Asset quality showed significant improvement, with slippages reducing to ₹278 crore from approximately ₹350 crore in previous quarters. The Special Mention Account (SMA) book dropped below 2%, indicating better control over potential stressed assets.

Financial Performance

USFB's financial metrics demonstrated positive trends:

• Net Interest Margin (NIM) improved to 7.9% from 7.7% in the previous quarter
• Net Interest Income stood at ₹922 crore
• Profit After Tax (PAT) was reported at ₹122 crore
• Return on Assets (ROA) at 1% and Return on Equity (ROE) at 7.7%

The bank maintained a strong capital position with a Capital to Risk-weighted Assets Ratio (CRAR) of 21.4%, providing a solid foundation for future growth.

Segment-wise Performance

The bank's focus on secured lending segments has yielded strong results, with significant growth observed in affordable housing, micro mortgages, and MSME segments.

Outlook

Ujjivan Small Finance Bank expects a meaningful decline in credit costs in the second half of the fiscal year. The management remains optimistic about maintaining the current Net Interest Margin levels of around 7.9% for the remainder of the fiscal year.

With improved asset quality, strong deposit growth, and a diversified loan portfolio, Ujjivan Small Finance Bank appears well-positioned to capitalize on growth opportunities in the small finance banking sector. The bank's strategic focus on increasing its secured loan book while maintaining a strong presence in microfinance is likely to contribute to sustainable growth in the coming quarters.