Ujjivan Small Finance Bank (UJJIVANSFB) Q3 24/25 earnings summary

Executive summary

• Secured loan book reached 39% of total, growing 52% YoY, led by affordable housing, MSME, and new products.

• Gross loan book reached ₹30,466 Cr, up 10% YoY; total deposits at ₹34,494 Cr, up 16% YoY.

• Microfinance collection efficiency improved, especially in previously stressed states.

• Interest rates on group and individual loans reduced by 115 bps and 75 bps, respectively, from Jan 2025, with minimal impact on profitability.

• Board approved application for voluntary transition to universal banking, with application planned in Q4.

Financial highlights

• PAT for Q3 was INR 109 crore; adjusted ROA and ROE at 1.1% and 15.1%, respectively.

• Net Interest Income for Q3FY25 at ₹887 Cr, up 3% YoY; NIM at 8.6%, down 18 bps YoY.

• Total deposits reached INR 34,494 crore, up 16% YoY; CASA deposits at INR 8,662 crore (25% of total), up 15% YoY.

• Credit cost for Q3 at INR 223 crore, with accelerated provision of INR 30 crore; credit cost surged 254% YoY in Q3FY25 due to ARC transaction.

• Cost-to-income ratio increased to 64% in Q3FY25 from 56% a year ago.

Outlook and guidance

• Secured business expected to grow ~50% in FY25, contributing 40%-42% of loan book by year-end.

• Credit cost guidance maintained at 2.3%-2.5% for FY25; Q4 credit cost expected at 0.8%-0.9%.

• Overall loan book growth guided at 8%-9% for FY25.

• Group and individual loan volumes expected to improve from Q4FY25.

• Focus on improving CASA ratio and reducing cost of funds.