Ujjivan Small Finance Bank Limited (NSE: UJJIVANSFB) gained 5.08% to close at ₹60.70, adding ₹569 crore to its market capitalization of ₹11,679 crore, after the bank reported a 52% year-on-year jump in its secured loan book to 39% of total assets.
Latest Quarterly Results
The bank’s gross loan book reached ₹30,466 crore, up 9.8% YoY, driven by a 13.3% quarterly increase in secured loans. Total deposits grew 16.3% YoY to ₹34,494 crore, with CASA deposits at ₹8,662 crore representing 25.1% of the total. The strategic shift toward secured lending helped offset margin pressure, with the secured portfolio now comprising 39% of assets compared to 28.3% a year earlier.
Net Interest Income rose 3.1% YoY to ₹887 crore, while Net Interest Margin compressed to 8.6% from portfolio rebalancing toward secured but lower-yielding products. Provisions increased to ₹223 crore from ₹63 crore in the year-ago period, reflecting elevated credit costs in the microfinance segment. Net profit declined 64% YoY to ₹109 crore, though this represented a modest improvement from the ₹67 crore recorded in Q1 FY25.
The bank’s capital adequacy ratio stood at 23.9%, providing substantial headroom for growth. The secured lending strategy, focused on affordable housing, MSME, and vehicle finance, positions the bank for improved asset quality and sustainable profitability.
Operating Performance
Stock Price Trend
Business & Operations Update
Ujjivan SFB announced plans to pursue a universal banking license, having filed its application with the Reserve Bank of India in February 2025. The bank scheduled investor meetings in the UAE from January 28-30, 2026, to meet with eight institutional investors including Abu Dhabi Investment Authority and Lunate Capital. Management also received board approval for Aniruddha Paul’s appointment as Independent Director effective January 22, 2026.
Analysts noted the bank’s successful portfolio diversification, with microfinance group loans declining to 45% of the book from 61% previously, while individual loans grew 21% YoY. The secured book expansion, including 34% quarterly growth in micro mortgages and 40% growth in vehicle finance, demonstrates effective execution of the strategic pivot. Collection efficiency improvements in previously stressed states like West Bengal and Uttar Pradesh signal stabilizing asset quality trends.
Performance Summary
Ujjivan SFB’s stock surged 77.9% over the past year, outperforming sector indices as investors rewarded the bank’s transformation toward secured lending and its path to universal banking status. The lender targets a gross loan book of ₹1 lakh crore by FY30, with secured loans reaching 65-70% of assets and RoE improving to 16-18%.