Ujjivan Small Finance Bank (UJJIVANSFB) Q1 25/26 earnings summary

Executive summary

• Gross loan book reached ₹33,287 Cr, up 11% YoY and 4% QoQ, with secured loans now 46% of the portfolio, reflecting a 61% YoY increase in secured lending.

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

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

• Application for a Universal Banking License was submitted to RBI and is under consideration.

• Asset quality saw GNPA at 2.5% and NNPA at 0.7%, both up YoY; collection efficiency declined to 96.0% from 97.4% YoY.

Financial highlights

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

• Pre-provision operating profit was ₹360 Cr, down 29% YoY and flat sequentially.

• Cost-to-income ratio stood at 67%; OpEx reduced by 3% QoQ, mainly due to lower variable pay and IT savings.

• Credit cost rose to ₹225 Cr, up 105% YoY but down 15% sequentially.

• Other income for Q1FY26 was ₹24,899 lakh, up from ₹19,709 lakh in Q1 FY25 but down from ₹26,969 lakh in Q4 FY25.

Outlook and guidance

• FY26 guidance: advances growth ~20%, secured book growth ~35%, maintain CD ratio at 88%, CASA at 27%.

• Cost-to-income expected at ~67%, credit cost at 2.3–2.4%, ROE at 10–12%, ROA at 1.2–1.4%.

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

• Credit cost on unsecured expected at 2–2.25%, secured at 0.7–0.8%, with overall normalization by Q4.

• Digital Banking Unit reporting as a sub-segment under Retail Banking will be implemented based on the DBU Working Group's decision.