Ujjivan Small Finance Bank (Ujjivan SFB) is preparing to take the next big step in its journey by applying for a Universal Banking License. The move is aimed at removing the ‘small finance’ tag and positioning the bank as a full-scale lender with wider offerings.
With a universal license, Ujjivan SFB will be able to lower its capital requirement to 11.5%. It will also gain access to new business areas such as co-lending, securitization investments, and other banking products. This is expected to strengthen the bank’s reach among corporates, retail customers, and institutions.
The license will also reduce priority sector lending requirements from 75% to 40%. This will give Ujjivan more room to diversify its loan book beyond microfinance and retail segments. The removal of the 50% exposure cap up to ₹25 lakh ticket size will further help the bank serve larger customers.
Founded in 2015 as a microfinance institution and later converted into a small finance bank, Ujjivan has steadily grown into a pan-India player. It now has 752 branches across 26 states and union territories, serving more than 95 lakh customers.
The bank has built a strong retail deposit franchise, with retail deposits forming 71% of total deposits in FY25. Its CASA ratio reached 25.5% in the same year, showing growing customer trust. Ujjivan has also expanded its secured loan products, including housing, MSME, vehicle, agri, and gold loans.
Digital banking has become another key strength, with over 92% of transactions happening online. Ujjivan’s mobile apps, WhatsApp banking, and vernacular digital platforms have helped it connect with millions of customers across India.
By seeking a universal banking license, Ujjivan aims to unlock new opportunities and strengthen its brand in the competitive banking sector. The transformation is expected to support its long-term vision of achieving a ₹1 lakh crore loan book by FY30, with 65-70% in secured assets.
