{"id":174527,"date":"2026-01-22T12:07:52","date_gmt":"2026-01-22T17:07:52","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=174527"},"modified":"2026-01-22T12:07:52","modified_gmt":"2026-01-22T17:07:52","slug":"ujjivan-small-finance-bank-gains-on-strong-q3-secured-loan-growth","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/ujjivan-small-finance-bank-gains-on-strong-q3-secured-loan-growth\/","title":{"rendered":"Ujjivan Small Finance Bank Gains on Strong Q3 Secured Loan Growth"},"content":{"rendered":"\n
Ujjivan Small Finance Bank Limited (NSE: UJJIVANSFB) gained 5.08% to close at \u20b960.70, adding \u20b9569 crore to its market capitalization of \u20b911,679 crore, after the bank reported a 52% year-on-year jump in its secured loan book to 39% of total assets.<\/p>\n\n\n\n
Latest Quarterly Results<\/strong><\/h2>\n\n\n\n
The bank’s gross loan book reached \u20b930,466 crore, up 9.8% YoY, driven by a 13.3% quarterly increase in secured loans. Total deposits grew 16.3% YoY to \u20b934,494 crore, with CASA deposits at \u20b98,662 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.<\/p>\n\n\n\n
Net Interest Income rose 3.1% YoY to \u20b9887 crore, while Net Interest Margin compressed to 8.6% from portfolio rebalancing toward secured but lower-yielding products. Provisions increased to \u20b9223 crore from \u20b963 crore in the year-ago period, reflecting elevated credit costs in the microfinance segment. Net profit declined 64% YoY to \u20b9109 crore, though this represented a modest improvement from the \u20b967 crore recorded in Q1 FY25.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Business & Operations Update<\/strong><\/h2>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Performance Summary<\/strong><\/h2>\n\n\n\n
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 \u20b91 lakh crore by FY30, with secured loans reaching 65-70% of assets and RoE improving to 16-18%.<\/p>\n","protected":false},"excerpt":{"rendered":"
Ujjivan Small Finance Bank Limited (NSE: UJJIVANSFB) gained 5.08% to close at \u20b960.70, adding \u20b9569 crore to its market capitalization of \u20b911,679 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 \u20b930,466 crore, up 9.8% YoY, […]<\/p>\n","protected":false},"author":2396,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1941,1],"tags":[151,10169,8265],"class_list":["post-174527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-analysis","category-finance-stocks","tag-banking","tag-earnings","tag-finance"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":178930,"url":"https:\/\/alphastreet.com\/india\/esaf-small-finance-bank-reverses-quarterly-loss-as-secured-lending-and-asset-transfers-bolster-q3-fy26-results\/","url_meta":{"origin":174527,"position":0},"title":"ESAF Small Finance Bank Reverses Quarterly Loss as Secured Lending and Asset Transfers Bolster Q3 FY26 Results","author":"Staff Correspondent","date":"February 2, 2026","format":false,"excerpt":"ESAF Small Finance Bank (NSE: ESAFSFB)\u00a0 reported a net profit of \u20b97.12 crore for the third quarter, supported by a 150% year-over-year surge in disbursements. 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