Ujjivan Small Finance Bank has reported strong financial performance for Q3FY26, with significant growth across deposits, loan book, and disbursements while maintaining improved asset quality metrics. The Bengaluru-based lender released its business update for the third quarter and nine months ended December 31, 2025.

Deposit Growth and CASA Performance

The bank's deposit base expanded substantially during the quarter, reflecting strong customer confidence and market penetration.

The CASA ratio improvement to 27.3% from 25.1% in the previous year indicates enhanced low-cost funding, while the credit-deposit ratio of 87.8% demonstrates efficient fund deployment.

Loan Portfolio Expansion

The bank's gross loan book reached ₹37,055 crores, marking a 21.6% year-on-year increase from ₹30,466 crores. The portfolio diversification strategy is evident across multiple segments.

The secured book now represents 48.1% of the total portfolio, valued at ₹17,829 crores, compared to 39.3% in December 2024, indicating a strategic shift towards secured lending. Sequentially, the loan book grew 7.1% from ₹34,588 crores.

Strong Disbursement Performance

Q3FY26 witnessed robust disbursement activity across all major segments, with overall disbursements reaching ₹8,311 crores, representing a 55.0% year-on-year increase from ₹5,362 crores.

Asset Quality Improvement

The bank demonstrated significant improvement in asset quality metrics, reflecting enhanced risk management and collection efficiency.

The Portfolio at Risk (PAR) declined to 3.98% from 5.36% year-on-year, while Gross Non-Performing Assets (GNPA) improved to 2.39% from 2.68%. The micro banking bucket collection efficiency remained strong at 99.70% in December 2025.

Market Performance and Corporate Actions

Shares of Ujjivan Small Finance Bank ended at ₹55.76 on Friday, up by ₹2.36 or 4.42% on the BSE. The bank has previously announced plans to raise ₹2,000 crores via Qualified Institutional Placement (QIP) over the next 18-24 months. Write-offs during Q3FY26 amounted to ₹119.6 crores compared to ₹41.7 crores in Q3FY25.

Ujjivan Small Finance Bank has expanded its service portfolio with the launch of comprehensive foreign exchange services and Exchange Earners' Foreign Currency (EEFC) accounts, targeting customers engaged in cross-border transactions. This strategic move positions the bank to better serve the growing demand for international banking solutions across various customer segments.

Comprehensive Foreign Exchange Services

The bank's new foreign exchange services encompass a complete range of cross-border transaction solutions. The offerings include inward and outward remittances, enabling customers to receive funds from overseas and send money abroad seamlessly. Additionally, the services feature foreign currency deposit facilities, allowing customers to maintain balances in multiple currencies according to their international business or personal requirements.

EEFC Accounts for Foreign Currency Earners

Alongside the general forex services, Ujjivan Small Finance Bank introduced specialized EEFC accounts designed for exporters, freelancers, and professionals earning in foreign currency. These accounts provide significant flexibility by allowing holders to retain foreign exchange earnings without immediate conversion into Indian rupees, ensuring compliance with Foreign Exchange Management Act (FEMA) regulations.

The EEFC facility supports multiple freely convertible currencies and can be utilized for various permissible transactions. Account holders can use these funds for business payments, travel expenses, and trade-related transactions, providing enhanced financial flexibility for international operations.

Service Delivery and Support Infrastructure

The foreign exchange services are accessible through both digital and branch banking channels, ensuring comprehensive coverage for different customer preferences. The bank has established dedicated forex teams to support these services, providing specialized assistance for complex international transactions and regulatory compliance requirements.

Target Market and Strategic Impact

The new services are specifically designed to support small and medium enterprises, non-resident Indians, and travelers with international banking requirements. This expansion represents a significant enhancement of Ujjivan Small Finance Bank's international banking capabilities, positioning the institution to capitalize on rising cross-border trade and increasing overseas earnings among its customer base.

The launch addresses the growing market demand for sophisticated foreign exchange and remittance services, particularly as businesses and individuals increasingly engage in international transactions. By offering these comprehensive solutions, the bank strengthens its competitive position in the evolving financial services landscape.