Ujjivan Small Finance Bank , a prominent player in the Indian banking sector, has reported strong financial results for the latest quarter, with significant growth in profit, disbursements, and loan book.

Key Financial Highlights

Detailed Analysis

Ujjivan Small Finance Bank demonstrated robust growth across various financial metrics in the latest quarter:

• Net Profit: Increased to ₹122 crore, marking an 18.2% growth quarter-on-quarter.
• Disbursements: Reached a record ₹7,932 crore, up 47.6% year-on-year and 21.3% quarter-on-quarter.
• Gross Loan Book: Expanded to ₹34,588 crore, growing 14.0% year-on-year and 3.9% quarter-on-quarter.
• Deposits: Stood at ₹39,211 crore, up 15.1% year-on-year.
• CASA Deposits: Grew 22.1% year-on-year to ₹10,783 crore.
• Secured Book: Expanded significantly by 52.9% year-on-year to ₹16,173 crore, now representing 46.8% of total loans.
• Net Interest Income: Increased by 7.7% quarter-on-quarter to ₹922 crore.

Asset Quality and Financial Ratios

The bank showed improvement in its asset quality metrics:

• Portfolio at Risk: 4.45%
• Gross Non-Performing Assets (GNPA): 2.45%
• Net Non-Performing Assets (NNPA): 0.67%

Other key financial ratios include:

• Return on Assets: 1.0%
• Return on Equity: 7.7%
• Capital Adequacy Ratio: 21.4% (with Tier I at 19.9%)
• Cost of Funds: Improved to 7.3% from 7.6% in the previous quarter

Conclusion

Ujjivan Small Finance Bank's latest quarterly results demonstrate strong growth and improved financial performance across various parameters. The significant increase in disbursements, expansion of the loan book, and growth in deposits indicate robust business momentum. The improvement in asset quality metrics and the substantial growth in the secured book suggest a focus on risk management and portfolio diversification.

The bank's ability to grow its Net Interest Income while improving its cost of funds reflects effective financial management. The healthy capital adequacy ratio provides a strong foundation for future growth.

Moving forward, Ujjivan Small Finance Bank appears well-positioned to capitalize on its current momentum, with a focus on sustainable growth, asset quality maintenance, and further improvement in profitability metrics.

Ujjivan Small Finance Bank has reported significant growth across its key financial metrics for the quarter ended September 30, 2025, demonstrating strong performance in deposits, loan book, and disbursements.

Deposit Growth

The bank's total deposits reached ₹39,101 crore as of September 30, 2025, marking a substantial 14.8% year-on-year increase from ₹34,070 crore in the same period last year. Notably, the Current Account Savings Account (CASA) ratio improved to 27.6% from 25.9% year-on-year, indicating a healthier deposit mix.

Loan Book Expansion

USFB's gross loan book expanded to ₹34,588 crore, showing a 14% year-on-year growth from ₹30,343 crore. The bank's focus on secured lending is evident, with the secured book growing by an impressive 54.5% year-on-year to ₹16,342 crore, now constituting 47% of the total loan book.

Disbursements Surge

Total disbursements for Q2 FY26 stood at ₹7,958 crore, representing a robust 48% year-on-year increase from ₹5,376 crore in Q2 FY25. This growth was driven by strong performances across various segments:

• Housing loans (including micro mortgages) saw a 41.4% year-on-year increase in disbursements.
• MSME disbursements more than doubled, growing by 135.2% year-on-year.
• Financial Institutions Group (FIG) disbursements surged by 133.3% compared to the same quarter last year.

Asset Quality Improvement

The bank's asset quality showed signs of improvement, with Portfolio at Risk (PAR) decreasing to 4.45% as of September 30, 2025, compared to 5.08% a year ago. The Gross Non-Performing Assets (GNPA) ratio remained relatively stable at 2.46%.

Segment-wise Performance

While most segments showed growth, some areas experienced notable changes:

• The Group Loan (GL) book decreased by 12% year-on-year, possibly indicating a strategic shift.
• Housing loans, including micro mortgages, grew significantly by 51.3% year-on-year.
• The MSME segment saw substantial growth, with the loan book expanding by 69% year-on-year.
• Vehicle loans and gold loans showed remarkable growth, with year-on-year increases of 150.4% and 564.5%, respectively.

Collection Efficiency

The bank maintained high collection efficiency in its micro banking segment (GL & IL), with Bucket X collection efficiency at 99.50% for September 2025, showing a slight improvement from previous months.

This comprehensive growth across various segments underscores Ujjivan Small Finance Bank's strong market position and effective strategies in expanding its business while maintaining asset quality. The bank's focus on secured lending and diversification of its loan portfolio appears to be yielding positive results.

Note: The financial figures mentioned are provisional and subject to audit/limited review by the bank's statutory auditors.