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Bengaluru – Ujjivan Small Finance Bank Ltd. has delivered a strong financial and operational performance for the quarter ended September 2025 (Q2 FY26), showcasing significant growth in profitability, deposits, and asset quality. The bank reported its highest-ever disbursements, improved cost of funds, and a stronger secured loan portfolio, indicating a solid strategic momentum in its growth trajectory.
📈 Key Financial Highlights (Q2 FY26)
Profitability
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Net Profit (PAT) surged to ₹122 Crore, up 18.2% quarter-on-quarter (QoQ).
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Pre-Provision Operating Profit (PPoP) increased 9.6% QoQ to ₹395 Crore.
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Net Interest Income (NII) rose by 7.7% QoQ to ₹922 Crore, reversing a declining trend seen over the past three quarters.
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Return on Assets (RoA) stood at 1.0%, and Return on Equity (RoE) at 7.7%.
Balance Sheet Strength
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Gross Loan Book reached ₹34,588 Crore, up 14.0% year-on-year (YoY) and 3.9% QoQ.
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Secured Loan Portfolio saw significant expansion, now comprising 46.8% of the total loan book, compared to 34.9% last year.
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Deposits rose to ₹39,211 Crore, a growth of 15.1% YoY.
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CASA Deposits grew robustly to ₹10,783 Crore, up 22.1% YoY, with a CASA ratio of 27.5%.
🚀 Operational Performance
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Highest-ever Disbursements: ₹7,932 Crore, registering 47.6% YoY growth and 21.3% QoQ.
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Micro Banking Disbursements: ₹4,259 Crore, up 29.3% YoY.
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Cost of Funds declined to 7.3%, down from 7.6% in the previous quarter, reflecting improved liquidity management.
🔐 Asset Quality & Collections
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Portfolio at Risk (PAR): Improved to 4.45% from 4.81% in June 2025.
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Gross NPA: 2.45% | Net NPA: 0.67%
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Provision Coverage Ratio: 73%
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Collection Efficiency for the microfinance segment remained strong at 99.5%.
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Overall SMA levels reduced to 1.99%, the lowest since Q1 FY25.
💬 Management Commentary
Mr. Sanjeev Nautiyal, MD & CEO of Ujjivan Small Finance Bank, commented:
“We have delivered calibrated and quality growth this quarter. Our secured loan book has expanded significantly, and we have successfully reduced the cost of funds. With new product offerings such as mutual fund distribution, forex services, and ASBA rollouts planned in upcoming quarters, we are further strengthening our retail franchise. Our strong disbursement momentum, coupled with improving asset quality, positions us well to achieve our growth target of 20% advances in FY26 while maintaining credit costs between 2.3% and 2.4%.”
🧮 Capital Position
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Capital Adequacy Ratio: 21.4%
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Tier I Capital Ratio: 19.9%
This robust capital position provides adequate buffer for expansion and risk mitigation as the bank continues its growth journey.
🔮 Outlook
With strong momentum in secured lending, improving profitability metrics, strategic expansion plans, and digital initiatives in pipeline, Ujjivan Small Finance Bank aims to maintain its growth trajectory in FY26 with a focus on sustainability, diversification, and enhanced customer engagement.
🔖 Hashtags
#UjjivanSFB #QuarterlyResults #BankingGrowth #FinancialPerformance #Q2FY26 #Microfinance #SecuredLoans #CASAGrowth #IndianBanking #NBFCtoBankSuccess #UjjivanFinancials #ProfitGrowth #BankingSectorIndia #FinancialStability #EconomicGrowth
