Ujjivan Small Finance Bank has informed stock exchanges about a key leadership change, announcing the resignation of its Business Head for Micro, Small and Medium Enterprises (MSME) division. The bank filed the mandatory disclosure with both NSE and BSE on January 14, 2026.

Senior Management Departure

Mr. Ashim Sarkar, who served as Business Head - MSME and was designated as Senior Management Personnel (SMP), concluded his tenure with the bank on January 14, 2026. The bank stated that Sarkar resigned to pursue better career prospects and confirmed this as his last working day.

The following table summarizes the key details of the resignation:

Resignation Timeline

According to internal HR documentation, the resignation process began earlier than the effective date. Sarkar originally submitted his resignation on October 17, 2025, with the standard 90-day notice period extending to January 14, 2026. The employee had initially requested an earlier last working day of December 26, 2025, but ultimately served until the full notice period completion.

Regulatory Compliance

The bank filed the necessary disclosures in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. Company Secretary and Head of Regulatory Framework Sanjeev Barnwal signed the official communication to the exchanges.

Ujjivan Small Finance Bank emphasized that no other material reasons exist for the resignation beyond the stated career advancement motivation. The resignation notice and related documentation have been made available on the bank's official website at www.ujjivansfb.bank.in .

MSME Division Impact

The departure affects the bank's MSME business segment, though the bank has not announced immediate replacement plans or interim leadership arrangements for the division. The MSME segment represents a crucial business vertical for small finance banks, focusing on lending and financial services to micro, small, and medium enterprises across India.

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.