Coimbatore: Ujjivan Small Finance Bank ltd. [BSE: 542904;NSE: UJJIVANSFB],today announced its financial performance forthe quarter ended June, 2025

Summary of Ujjivan Small Finance Bank Business Performance–Q1FY26

Assets

Gross loan book at ₹ 33,287* Crore up 11%
YoY/4%QoQ

Secured book share at 45.5% as of Jun’25vs 31.3% as of Jun’24 and43.5% as of Mar’25

Collection and Asset Quality

Bucket-Xcollection efficiencyremained strongfor Group and Individual Loan book at 99.3% forJun’25
Portfolio at Risk*/GNPA*/NNPA*at4.8%/2.5%/0.7%respectively as ofJun’25; for Mar’25at4.5%/ 2.2%/0.5%respectively;
Accelerated Provision as of Jun’25 at ₹ 23Crore; Provision coverage ratio as of Jun’25is 73%#

Deposits

Deposits at ₹38,619Crore as of Jun’25up 18.8% YoY/2.6%QoQ
CASA at ₹ 9,381Crore up 12.6%YoY with CASA ratio at 24.3% as of Jun’25
Retail TD^ + CASAcontinues to grow and as of Jun’25is₹ 27,883Crore,up 16% YoY

Financials

Q1FY26 PAT of ₹103Crore up 24% QoQ
Credit Cost for Q1 FY26at ₹225 Crore, includingaccelerated provision of ₹23 Crore
Q1FY26 RoA / RoE at 0.8% / 6.7%

Capital and Liquidity

Capital adequacy ratio at 22.8%
Ample liquidity with Average Daily LCRfor Jun’25 was 156%

Ujjivan Small Finance Bank MD & CEO Sanjeev Nautiyal said “In Q1FY26, we delivered robust 11% YoY growth in our gross loan book this was backed withstrong momentum across secured segment which grew 63% YoY. The disbursements for the quarter at ₹ 6,539 Crore, up 24% YoY.Our total deposits grew 19%YoY to ₹38,619 crores. CASA deposits were up 13% at ₹ 9,381 Crore. Retail TD plus CASA deposits stood at ₹27,884 crores, registering a 16% growth YoY and contributing 72% to total deposits.Our cost of funds remained at 7.6% in Q1 and are expected to reduce in upcoming quarters since we have reduced the peak FD rates by 65 basis points and SA rates have been selectively re-calibrated up to 100 basis points.

The MFIN Guardrails 2.0, have been fully adopted by the Bank effective 1st April 2025. While we had anticipated a slower disbursement, we see that demand scenario continues to improve and Q1 disbursement in Group Loan was 2% higher than Q4. We stay aligned to this new operating framework and are focusing on deeper existing customer engagement and opportunities to acquire new customers. In Micro Banking nearly 1.1 lakh new customers were added in Q1 andnearly 34,000 customers were graduated from group loan to individual lending and also migrated substantial customers to secured products of Gold, Vehicle and Micro Mortgages, a testament to our efforts in nurturing credit-worthy borrowers and driving sustainable growth.

The recent regulatory change of reducing PSL requirement for SFB’s from 75% to 60% enhances flexibility to calibrate portfolio mix. The Reserve Bank of India took various steps starting February’25 including reduction of policy repo rate and continuous liquidity infusion. We believe these measures would bring down the cost of funds and increase demand in rate sensitive segments.

PAT for Q1 at ₹103 Crore is up 24% QoQ. RoA increased 12 bps to 0.8% and RoEincreased114 bps at 6.7%. Other income saw robust growth of 26% YoY lead by treasury income. Credit Cost was lower QoQ at ₹225 Crore including accelerated provision of ₹23 Crore. For FY26 we expect to grow advances around 20% with a credit cost in the range of 2.3% to 2.4% of average gross advances. RoE to be around 10% to 12% and RoA to be around 1.2% to 1.4%.