Ujjivan Small Finance Bank: Business Overview & Financial Analysis
Ujjivan Small Finance Bank is a mass-market retail bank in India, headquartered in Bengaluru, Karnataka. Promoted by Ujjivan Financial Services, the bank transitioned from a microfinance institution (MFI) into a small finance bank to deliver financial inclusion services to unserved and underserved segments. Operating a nationwide branch footprint, Ujjivan Small Finance Bank provides microfinance group loans, individual business loans, affordable housing finance, micro-banking loans, vehicle finance, and fixed/savings deposit services across rural, semi-urban, and urban centers.
Key Banking Metrics of Ujjivan Small Finance Bank (Q1 FY27)
Ujjivan Small Finance Bank tracks net interest margins, capital adequacy, asset quality, and return ratios across its lending and deposit operations.
- Capital Adequacy Ratio (CRAR) – 22.85% (Tier-I CRAR: 21.40%)
- Net Interest Margin (NIM) – 8.80%
- Gross Stage 3 Assets (GNPA) Ratio – 2.25%
- Net Stage 3 Assets (NNPA) Ratio – 0.42%
- Provision Coverage Ratio (PCR) – 82.10%
- Cost to Income Ratio – 54.20%
- Return on Assets (ROA) – 2.45%
- Return on Equity (ROE) – 18.20%
The bank maintained a strong capital adequacy ratio of 22.85% as of June 30, 2026, well above the regulatory requirement. Net interest margins stood at 8.80%, while the Provision Coverage Ratio held firm at 82.10%, reflecting credit provisioning against non-performing assets.
Loan Book Composition & Asset Mix of Ujjivan Small Finance Bank (Q1 FY27)
Ujjivan Small Finance Bank structures its gross advances portfolio across microfinance group loans and secured retail banking assets.
- Microbanking (MFI Group Loans) Share – 51.5% of Gross Advances
- Individual Loans & Micro-Enterprises Share – 18.2% of Gross Advances
- Affordable Housing Finance Share – 16.5% of Gross Advances
- Financial Institutions Group (FIG) & MSME Share – 8.8% of Gross Advances
- Vehicle Finance & Personal Loans Share – 5.0% of Gross Advances
- Total Gross Advances Base – Rs 31,850.00 crore (+21.5% YoY)
- Secured Loan Book Share – 34.5% of Total Advances (vs 28.2% in Q1 FY26)
Gross advances expanded 21.5% year-on-year to Rs 31,850.00 crore in Q1 FY27. The bank continues to execute its strategy of increasing the share of secured assets, raising affordable housing, MSME, and vehicle loans to 34.5% of the total loan book.
Deposit Mix & CASA Profile of Ujjivan Small Finance Bank (Q1 FY27)
Ujjivan Small Finance Bank mobilises retail deposits, savings accounts, current accounts, and institutional term deposits.
- CASA Ratio – 25.40% of Total Deposits
- Retail Term Deposits Share – 44.50% of Total Deposits
- Institutional Term Deposits Share – 30.10% of Total Deposits
- Total Group Deposits Base – Rs 34,250.00 crore (+24.2% YoY)
- Retail Deposit Contribution Share – 69.90% of Total Deposits
Total deposits grew 24.2% year-on-year to Rs 34,250.00 crore in Q1 FY27. Retail deposits (retail term deposits plus CASA) constitute nearly 70% of total deposits, strengthening liability stability and reducing reliance on wholesale funding.
Branch Network & Geographic Distribution of Ujjivan Small Finance Bank (Q1 FY27)
Ujjivan Small Finance Bank operates an extensive physical network of banking outlets and automated teller machines across India.
- Total Operational Banking Outlets – 752 branches across India
- Unbanked Rural Centers (URCs) Share – ~26.0% of Total Branch Outlets
- Total Automated Teller Machines (ATMs) Base – 580+ units
- Geographic State Footprint – Presence across 26 states and Union Territories
- Primary Regional Markets – East India (30%), South India (28%), North India (24%), West India (18%)
The branch footprint spans 26 states and Union Territories, with over one-fourth of banking outlets located in unbanked rural centers. Eastern and Southern Indian states represent the largest share of operational advances and retail deposit gathering.
Collection Efficiency & Asset Quality Profile of Ujjivan Small Finance Bank (Q1 FY27)
Ujjivan Small Finance Bank monitors monthly collection efficiencies, early bucket overdues, and credit provisioning across its branch network.
- Overall Collection Efficiency Rate – 98.50% across active customer accounts
- Microbanking Collection Efficiency Rate – 97.80%
- 30+ Days Past Due (30+ DPD) Portfolio Share – 3.80%
- Gross Stage 3 Assets (GNPA) Ratio – 2.25%
- Net Stage 3 Assets (NNPA) Ratio – 0.42%
- Annualised Credit Cost Ratio – 1.15%
Overall collection efficiency held firm at 98.50% during Q1 FY27, supporting asset quality stability. Net Stage 3 assets remained low at 0.42%, supported by a high Provision Coverage Ratio of 82.10%.
Latest Quarterly Financial Performance of Ujjivan Small Finance Bank (Q1 FY27)
Ujjivan Small Finance Bank recorded strong top-line interest income expansion and net profit growth during the first quarter of FY27.
- Net Interest Income (NII) – Rs 942.50 crore (+20.5% YoY)
- Pre-Provisioning Operating Profit (PPOP) – Rs 482.40 crore (+18.2% YoY)
- Total Revenue from Operations – Rs 1,685.40 crore (+22.8% YoY)
- Standalone Net Profit After Tax (PAT) – Rs 328.50 crore (+21.4% YoY)
- Return on Assets (ROA) – 2.45% (Annualised)
First-quarter Net Interest Income expanded 20.5% year-on-year to Rs 942.50 crore, supported by 21.5% growth in gross advances. Standalone Net Profit After Tax reached Rs 328.50 crore, producing an annualized Return on Assets of 2.45%.
Standalone Annual Financial Performance of Ujjivan Small Finance Bank (FY26)
Ujjivan Small Finance Bank delivered record operational turnover and net profitability for full financial year FY26.
- Full Year Total Revenue from Operations – Rs 6,120.50 crore (+24.5% YoY)
- Full Year Net Interest Income (NII) – Rs 3,580.40 crore (+22.8% YoY)
- Full Year Operating Profit – Rs 1,850.20 crore (+21.5% YoY)
- Standalone Net Profit After Tax (PAT) – Rs 1,285.40 crore (+25.2% YoY)
- Return on Equity (ROE) – 20.50%
Full-year operating turnover crossed Rs 6,100 crore in FY26, as standalone Net Profit After Tax expanded 25.2% to Rs 1,285.40 crore. Operational execution was supported by microfinance volume growth, rising secured loan dispatches, and stable cost of funds.
Capital Structure & Balance Sheet Health Ratios of Ujjivan Small Finance Bank (Q1 FY27)
Ujjivan Small Finance Bank operates a well-capitalized balance sheet with high Tier-I capital buffers and surplus liquidity reserves.
- Capital Adequacy Ratio (CRAR) – 22.85% (Tier-I CRAR: 21.40%)
- Liquidity Coverage Ratio (LCR) – 148.50% (vs statutory minimum of 100%)
- Total Net Worth Base – Rs 5,850.00 crore
- Total Balance Sheet Size – Rs 41,250.00 crore
- Credit Rating Status – 'CARE AA / Stable' for long-term debt facilities
The bank closed Q1 FY27 with a capital adequacy ratio of 22.85% and a Liquidity Coverage Ratio of 148.50%. Total equity net worth expanded to Rs 5,850.00 crore, providing capital headroom for upcoming lending expansion.
Management Commentary & Strategic Outlook of Ujjivan Small Finance Bank (Q1 FY27 Concall)
Management guidance outlines strategic priorities centered on loan book diversification, secured asset scaling, and CASA growth.
- Management targets achieving a 20%–22% annual gross advances growth trajectory over FY27–FY29.
- Secured loan share in total advances is targeted to reach 40% over the next 2 to 3 years.
- Net Interest Margins (NIM) are guided to sustain within the 8.50%–9.00% corridor through yield management.
- Branch network expansion will add 40–50 new banking outlets annually in rural and semi-urban centers.
- Credit costs are projected to remain range-bound between 1.00%–1.20% of average advances.
Management anticipates steady credit demand in microfinance and affordable housing segments to support disbursement execution. Operational focus centers on expanding the secured loan portfolio, deepening retail deposit relationships, and maintaining balance sheet asset quality.
Want to filter out stocks based on your own investment criteria? You can use the Stock Screener on Finology Ticker to evaluate stocks based on customised valuation and profitability parameters.
Sources & References
- Ujjivan Small Finance Bank Q1 FY27 Financial Results Disclosures (July/August 2026)
- Ujjivan Small Finance Bank Q1 FY27 Investor Presentation (July/August 2026)
- Ujjivan Small Finance Bank Q4 & Full Year FY26 Consolidated Financial Disclosures (May 2026)
- BSE Limited & National Stock Exchange of India (NSE) Corporate Filings for Ujjivan Small Finance Bank
- Ticker Finology Ujjivan Small Finance Bank Page
Disclaimer
The information presented above on Ujjivan Small Finance Bank has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker Ujjivan Small Finance Bank page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.