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

Ujjivan Small Finance Bank Limited has announced another addition to its comprehensive series of investor and analyst meetings for March 2026, scheduling a virtual session with Natixis on March 25, 2026. The bank continues to maintain strict compliance with SEBI (LODR) Regulations 2015 through formal intimations to stock exchanges about these institutional investor interactions.

Updated Meeting Schedule

The bank has now organized five virtual meetings, all to be conducted from Bangalore with varying time slots:

Latest Regulatory Communication

The most recent intimation, dated March 20, 2026, was formally communicated to both National Stock Exchange of India Limited and BSE Limited under reference number USFB/CS/SE/2025-26/145. This communication specifically addresses the March 25 meeting with Natixis, featuring a group of existing and prospective investors.

Regulatory Compliance Framework

The bank maintains its commitment to regulatory compliance across all scheduled meetings. The latest intimation follows the established protocol, with Company Secretary and Head of Regulatory Framework Sanjeev Barnwal providing digital signatures for formal documentation on March 20, 2026.

Information Sharing Protocol

Ujjivan Small Finance Bank has consistently confirmed that no unpublished price sensitive information will be shared during these investor and analyst meetings. This commitment ensures compliance with insider trading regulations and maintains market integrity across all scheduled interactions.

The bank has provided flexibility in its meeting schedules, noting that changes may occur due to any exigency on the part of the bank or counterparty. All meeting information remains accessible on the bank's official website at www.ujjivansfb.bank.in for public transparency.