Ujjivan Small Finance Bank (UJJIVANSFB) Q4 24/25 earnings summary

Executive summary

• New leadership team appointed, bringing extensive banking experience and overseeing the amalgamation with Ujjivan Financial Services Limited, effective April 30, 2024.

• Gross loan book reached INR 32,122 crore, up 8% YoY; secured loan book grew 56% YoY to INR 13,988 crore, now 44% of total loans.

• Total deposits rose 20% YoY to INR 37,630 crore, with CASA at INR 9,612 crore and retail deposits comprising over 70% of the base.

• Net profit for FY25 was INR 726 crore, down 43% YoY, impacted by higher credit costs and provisions.

• Application filed with RBI for transition to Universal Bank in February 2025; ongoing digital and product diversification initiatives.

Financial highlights

• Q4 disbursements reached an all-time high of INR 7,444 crore, up 39% QoQ and 11% YoY.

• Total income for FY25 at INR 7,201 crore, up 11% YoY; Q4 income at INR 1,843 crore.

• Net profit for FY25 was INR 726 crore, with ROA of 1.6% and ROE of 12.4%.

• NIM for FY25 at 8.3%, down 110 bps YoY; cost to income ratio at 62%.

• Provisions and contingencies rose sharply to INR 7,477 million in FY25; write-offs for the year totaled INR 362 crore.

Outlook and guidance

• Guidance for FY26 to be provided with Q1 FY26 results due to evolving market conditions.

• Focus on scaling secured lending, especially housing, MSME, and new product lines (vehicle, gold, agri loans), with continued emphasis on digital banking and expanding retail deposit base.

• Ongoing measures to de-risk portfolio, including credit guarantee covers and enhanced underwriting norms.

• Deposits expected to grow in line with assets, maintaining CD ratio around 88%.

• NIM expected to see only a small reduction as secured mix rises, offset by higher-yielding products and recent rate increases.