Ujjivan Small Finance Bank (Ujjivan SFB) continued its growth momentum in the second quarter of FY26, expanding its presence to 766 branches across India. The bank aims to strengthen its secured loan portfolio, targeting a 35% year-on-year growth, while maintaining healthy profitability and stable asset quality.
The bank reported record disbursements of ₹7,932 crore during the quarter, up 12% from the previous quarter. The total loan book rose to ₹30,552 crore, marking a 14% increase year-on-year. Ujjivan’s secured book-which includes home loans, vehicle finance, MSME, and gold loans-grew 53% year-on-year and now contributes 47% of the total portfolio, reflecting the bank’s successful diversification beyond microfinance.
Deposits grew by 15% year-on-year to reach ₹29,231 crore, supported by strong growth in retail and CASA deposits. CASA (current and savings account) balances crossed ₹10,000 crore, showing growing customer trust and deeper penetration in the mass and middle-income banking segments. The bank also improved its cost of funds to 7.3%, enhancing overall profitability.
Ujjivan SFB maintained its focus on asset quality, keeping gross NPAs at 1.1% and net NPAs at 0.3%. The bank’s collection efficiency stood at 99.5%, highlighting strong customer repayment behavior. Slippages were contained at ₹278 crore, and the bank continues to hold a healthy provision coverage ratio of 73%.
In terms of profitability, Ujjivan SFB reported a net profit of ₹122 crore for Q2FY26, compared to ₹103 crore in the previous quarter, reflecting an 18% sequential growth. Net interest income rose 7.7% quarter-on-quarter to ₹922 crore, while return on assets (ROA) stood at 1%.
The bank is rapidly expanding into newer geographies with a focus on semi-urban and rural markets. It has launched gold loan services across 600+ branches and continues to scale up its affordable housing and MSME segments. This expansion aligns with its goal of building a more balanced and secured loan portfolio.
Ujjivan Small Finance Bank serves over 87 lakh customers across India, providing a wide range of financial products including microfinance, housing loans, vehicle finance, MSME lending, and deposits. Its customer-first approach, strong digital channels, and focus on inclusive banking have helped it establish a strong foothold among low- and middle-income households.
With a solid capital adequacy ratio of 22.7% and a growing secured portfolio, Ujjivan SFB is well-positioned to deliver sustainable growth. The bank remains focused on achieving 20% credit growth for the full year and improving return on equity (ROE) to around 10-12% in FY26.
As it expands its physical and digital reach, Ujjivan SFB aims to deepen financial inclusion and become one of India’s most trusted small finance banks for both urban and rural customers.
