Date: July 23, 2026

Financial Performance Summary

Ujjivan Small Finance Bank reported strong financial results for Q1 FY27 (quarter ended June 30, 2026).

Key Financial Metrics

  • Net Interest Income (NII): Record high quarterly NII of ₹1,186 Crore, up 38.6% YoY
  • Net Interest Margin (NIM): 8.5% in Q1FY27, up 80 bps YoY
  • Pre-Provision Operating Profit (PPoP): Record quarterly PPoP of ₹548 Crore, up 52.0% YoY
  • Profit After Tax (PAT): ₹317 Crore, up 206.7% YoY
  • Return on Assets (RoA): 2.2%, up 131 bps YoY
  • Return on Equity (RoE): 18.2%, up 1,145 bps YoY
  • Cost to Income Ratio: 62.0% for Q1FY27, improved by 497 bps versus 67.0% in Q1FY26

Business Growth and Performance

Deposits:

  • Total deposits at ₹48,129 Crore, up 24.6% YoY and 5.4% QoQ
  • CASA at ₹12,930 Crore, up 37.8% YoY with CASA ratio at 26.9%
  • Cost of Funds for Q1FY27 at 6.9%, down 71 bps YoY and down 11 bps QoQ

Assets:

  • Gross loan book at ₹42,903 Crore, up 28.9% YoY and 5.5% QoQ
  • Secured book at ₹21,638 Crore, grew 42.7% YoY and 7.8% QoQ, representing 50.4% of gross loan book
  • Quarterly disbursement of ₹9,245 Crore, up 41.4% YoY
  • Branch count increased to 814 as of June 2026

Segment Performance:

  • Micro banking portfolio: ₹21,371 crore, up 16.8% YoY
  • Housing portfolio (Affordable Housing Loans and Micro Mortgage): ₹11,210 Cr, up 40.8% YoY
  • MSME portfolio: ₹3,470 Cr, up 54% YoY
  • Vehicle finance portfolio: Crossed ₹1,000 crore milestone (₹1,036 Crore)
  • Gold loan portfolio: Crossed ₹1,000 crore milestone (₹1,020 Crore)

Asset Quality

  • Gross NPA (GNPA): 2.17% as of June 2026 (vs 2.27% in March 2026)
  • Net NPA (NNPA): 0.34% as of June 2026 (vs 0.43% in March 2026)
  • Provision Coverage Ratio: 85% as of June 2026 (vs 81% in March 2026 and 73% in June 2025)
  • Portfolio at Risk: 3.58% in June 2026 versus 4.81% in June 2025
  • Collection Efficiency: Micro Banking Bucket-X collection efficiency at 99.68% for Q1FY27
  • Credit Cost: 0.9% for the quarter

Capital and Liquidity

  • Capital Adequacy Ratio: 20.36%
  • Liquidity Coverage Ratio (LCR): Average LCR for Q1FY27 at 132%
  • Net Worth: ₹7,144 Cr as of June 30, 2026

Guidance and Outlook Update

The bank revised its FY27 guidance upwards:

  • RoA Guidance: Revised to 1.8% to 2.0% (from previous unspecified target)
  • Credit Cost Guidance: Revised to 0.9%-1.0% of Average Total Assets
  • Asset Growth Target: 25% for FY27
  • Operating Expenses: Expected to be around 6.4% of average assets, lower than previously anticipated

Management Commentary

Ms. Carol Furtado, ED of Ujjivan Small Finance Bank, commented on the economic context and bank performance:

  • RBI maintained policy repo rate at 5.25% with neutral stance
  • RBI projects real GDP growth for FY27 at 6.6% and inflation at 5.1%
  • The bank maintained comfortable CD Ratio at around 89% in tight liquidity scenario
  • Implemented rate increases on key buckets in line with ALM outcome
  • Deposit customer initiatives gaining traction with strong Ivory programme growth
  • Improved insurance cross-sell and rising mutual fund adoption through digital channels
  • Co-branded credit card offering upcoming for deposit customers
  • New customer acquisition of 1.72 lakh in micro banking
  • Investments in branch expansion, branding initiatives, and enhanced technology and analytics capabilities began ramping up towards end of Q1 and will continue through FY27

Business Initiatives

  • Started Mutual Fund distribution
  • Co-Branded Credit Card offering for deposit customers (upcoming)
  • Strong performance across asset products offset macroeconomic headwinds

Bank Profile

Ujjivan Small Finance Bank Limited is a Scheduled Commercial Bank serving approximately 1 crore+ customers through 814 branches across 347 districts in 26 states and Union Territories. The bank offers a diversified portfolio spanning across Affordable Housing, MSME, Agri, Vehicle, Gold, Micro-Mortgage, FIG, and Microfinance (group and individual) loans. The bank is rated AA- (Stable) for long-term facilities by CARE Ratings and A1+ for short-term instruments by CRISIL.