Ujjivan Small Finance Bank (UJJIVANSFB) investor relations material

Executive summary

• Gross loan book grew 11% year-over-year, reaching up to ₹33,287 crore, with secured loans now 46% of the portfolio, reflecting a strategic shift and 61% YoY increase in secured lending.

• Total deposits grew 19% YoY to ₹38,619 crore, with retail term deposits and CASA up 16% YoY; average CASA balances rose 4% sequentially.

• Net profit for Q1FY26 was ₹103 crore, down 66% YoY but up 24% sequentially; ROA at 0.8% and ROE at 6.7%.

• Application for Universal Bank license is under RBI consideration following submission in February 2025.

• Unaudited financial results for the quarter ended June 30, 2025, were approved by the Board and reviewed by joint statutory auditors, who issued an unmodified conclusion.

Financial highlights

• Net Interest Income for Q1FY26 was ₹856 crore, down 9% YoY and 1% sequentially; NIM at 7.7%, down 157 bps YoY and 60 bps sequentially.

• Profit after tax for the quarter was ₹103 crore; return on assets at 0.86% and return on equity at 6.7%.

• Cost to income ratio stood at 67%; OpEx reduced by 3% sequentially due to lower variable pay and cost control.

• Credit cost rose to ₹225 crore, up 105% YoY but down 15% sequentially, including ₹23 crore of accelerated provisions.

• Total income for Q1 FY26 was ₹186,783 lakh, up from ₹177,427 lakh in Q1 FY25 and ₹184,305 lakh in Q4 FY25.

Outlook and guidance

• Advances growth targeted at ~20% with secured growth at ~35%; liabilities growth to match advances, maintaining CD ratio around 88%.

• CASA ratio expected to close at ~27%; cost to income ratio to remain around 67%.

• Credit cost guided at 2.3–2.4% of average gross loan book; ROE expected at 10–12%, ROA at 1.2–1.4%.

• NIM expected to stabilize at 7.8% by Q4 as excess liquidity is absorbed and deposit repricing benefits materialize.

• Medium-term aim: 20–25% CAGR in advances, secured share to reach 60–65% by FY30, NIMs to stabilize at 6–7%.