Ujjivan Small Finance Bank has received a rating reaffirmation from CRISIL Ratings Limited, which maintained its 'CRISIL A1+' rating on the bank's Certificate of Deposits programme while reducing the programme size and withdrawing ratings on a portion of existing certificates.

Rating Action and Programme Changes

CRISIL Ratings reaffirmed its 'A1+' rating on the Certificate of Deposits programme but reduced the amount from ₹2,500.00 crore to ₹375.00 crore. Simultaneously, the rating agency withdrew its rating on ₹2,125 crore of certificate of deposits upon the bank's request and receipt of relevant documentation, in line with CRISIL's withdrawal policy.

Business Performance and Growth Trajectory

The bank demonstrated improved growth momentum in the first half of fiscal 2026, with gross advances rising by 15.4% (annualised) to ₹34,588 crore as of September 30, 2025, and further increasing to ₹37,055 crore as of December 31, 2025. This marked a recovery from the modest 8% growth in fiscal 2025, which was constrained by challenges in the microfinance sector.

The micro-banking portfolio's share in overall gross advances decreased from 72% as of March 31, 2023, to 54% as of September 30, 2025, and further to 52% as of December 31, 2025. This reflects the bank's gradual diversification strategy across different asset classes.

Asset Quality and Financial Metrics

Asset quality metrics remained relatively stable with Gross Non-Performing Assets (GNPA) at 2.2% and Net Non-Performing Assets (NNPA) at 0.5% as of March 31, 2025. However, these metrics showed marginal moderation in the first half of fiscal 2026, with GNPA at 2.5% and NNPA at 0.7% as of September 30, 2025. On a provisional basis, GNPA improved to 2.39% as of December 31, 2025.

Profitability faced pressure in fiscal 2025, with Return on Managed Assets (RoMA) declining to 1.6% from 3.3% in fiscal 2024. The bank reported a profit of ₹726 crore in fiscal 2025 compared to ₹1,281 crore in fiscal 2024.

Capitalisation and Deposit Profile

The bank maintains adequate capitalisation with Tier I and overall Capital Adequacy Ratio (CAR) of 19.9% and 21.4% respectively as of September 30, 2025. The deposit base grew to ₹42,219 crore as of December 31, 2025, with a CASA ratio of 27.3% on a provisional basis.

The share of retail deposits stood at 71% of total deposits as of September 30, 2025, while institutional deposits comprised 29.2%. The bank has been working to reduce its reliance on bulk deposits, with the share declining from 89.4% in December 2017 to 29.2% in September 2025.

Rating Strengths and Challenges

CRISIL highlighted the bank's established market position in microfinance with over two decades of experience and adequate capitalisation as key strengths. The rating agency noted the bank's geographical diversification, with no single state accounting for more than 15% of the total loan book.

However, challenges include the modest share of CASA and retail deposits compared to banking peers, and the credit risk profile of borrowers in the microfinance segment. The bank's target customers primarily comprise semi-skilled self-employed individuals whose income flows can be volatile and dependent on local economic conditions.

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.