Ujjivan Small Finance Bank has announced its strategic guidance for loan portfolio composition, outlining a clear roadmap for the next several years. The bank's management shared these projections during a recent conference call, providing insights into the institution's planned portfolio transformation.

Strategic Loan Portfolio Target

The bank has set a specific target for its loan mix composition by FY2030. According to the guidance provided, the projected loan portfolio structure will be strategically balanced between secured and unsecured lending products.

Implementation Timeline

The bank has outlined a systematic approach to achieving this target loan mix. The management indicated that the transition will occur through a gradual annual progression of approximately 5% towards the desired portfolio composition. This measured approach suggests a deliberate strategy to balance growth objectives with risk management considerations.

Portfolio Transformation Strategy

The guidance reflects the bank's strategic focus on maintaining a predominantly secured loan portfolio while gradually increasing its unsecured lending component. This approach indicates the bank's intention to diversify its lending products while maintaining a conservative risk profile through the majority allocation to secured loans.

The annual progression target of 5% provides a structured timeline for the portfolio transformation, allowing the bank to monitor and adjust its lending strategy as market conditions evolve. This systematic approach demonstrates the bank's commitment to achieving its long-term portfolio objectives through measured growth.

Ujjivan Small Finance Bank has reaffirmed its financial guidance for FY26 during a recent conference call, maintaining confidence in its projected financial performance metrics. The bank's management has provided clear targets for key profitability ratios while also outlining its long-term strategic vision.

FY26 Financial Guidance

The bank has maintained its guidance for the fiscal year 2026, setting specific targets for two critical financial metrics. The management remains committed to achieving these targets despite the challenging operating environment in the financial services sector.

Long-Term Strategic Vision

Beyond the immediate FY26 targets, Ujjivan Small Finance Bank has articulated its long-term growth aspirations. The bank's strategic roadmap extends to FY2030, demonstrating management's commitment to sustainable growth and enhanced profitability over the medium term.

Management Outlook

The reaffirmation of these financial targets during the conference call indicates management's confidence in the bank's operational capabilities and strategic direction. The progressive improvement in ROA targets from the FY26 range of 1.2-1.4% to the FY2030 vision of 1.8-2% reflects the bank's focus on enhancing asset utilization efficiency and overall profitability. This guidance provides stakeholders with clear visibility into the bank's expected financial trajectory and strategic priorities for the coming years.