Ujjivan Small Finance Bank (UJJIVANSFB) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw strong loan origination, deposit mobilization, and highest ever disbursements at ₹7,932 Cr, with secured loans rising to 47% of the book and total deposits reaching ₹39,211 Cr, up 15.1% YoY.

• Added 14 new branches and 1.26 lakh micro-banking customers, with significant graduation to individual and secured loans.

• PAT for Q2 FY26 was ₹122 Cr, up 18.2% QoQ but down 47.6% YoY; NII grew 7.7% QoQ to ₹922 Cr.

• Unaudited financial results for the quarter and half year ended September 30, 2025, were approved by the Board, with an unmodified review from auditors.

Financial highlights

• Net interest income at ₹922 Cr, up 7.7% QoQ; NIM at 7.9%, up 21 bps QoQ but down 127 bps YoY; cost-to-income ratio stable at 66–66.4%.

• PAT for the quarter at ₹122 Cr; ROA at 1%, ROE at 7.7%, both down YoY.

• Total income for Q2 FY26 was ₹193,866 lakh, up from ₹182,004 lakh YoY; other income grew 23.7% YoY to ₹25,635 lakh.

• Gross loan book grew 3.9% QoQ and 14% YoY to ₹34,588 Cr; total deposits rose 1.5% QoQ and 15.1% YoY to ₹39,211 Cr; CASA grew 14.9% QoQ and 22.1% YoY to ₹10,783 Cr.

• Credit cost increased 56.1% YoY to ₹235 Cr; cost of funds improved to 7.3% from 7.6% in Q1 FY26.

Outlook and guidance

• FY26 guidance: advances growth ~20%, secured book growth ~35%, CASA ratio ~27%, cost-to-income ~67%, credit cost at 2.3–2.4%, ROE at 10–12%, ROA at 1.2–1.4%.

• NIM expected to stabilize around current levels; further cost of funds benefits expected due to phased CRR reduction and deposit repricing.

• Application for Universal Banking License submitted to RBI, pending regulatory decision.