Profit increases to ₹103 Crore, up 24% QoQ

Increasing Diversification in Asset Mix; Secured book share 46%

Gross loan book at ₹ 33,287 Crore up 11% YoY; Deposits at ₹ 38,619 Crore up 19% YoY

Secured book grows to ₹15,162 Crore, up 63% YoY; Secured share in loan book at 46%

Micro Banking Disbursement remains steady at ₹ 3,934 Crore at par with Q4FY25

Bengaluru, Thursday 24 July, 2025: Ujjivan Small Finance Bank ltd. [BSE: 542904; NSE: UJJIVANSFB], today announced its financial performance for the quarter ended June, 2025

Summary of Ujjivan Small Finance Bank Business Performance – Q1FY26

v Assets

· Gross loan book at ₹ 33,287* Crore up 11% YoY / 4% QoQ

· Secured book share at 45.5% as of Jun’25 vs 31.3% as of Jun’24 and 43.5% as of Mar’25

v Collection and Asset Quality

· Bucket-X collection efficiency remained strong for Group and Individual Loan book at 99.3% for Jun’25

· Portfolio at Risk*/GNPA*/NNPA* at 4.8%/2.5%/0.7% respectively as of Jun’25; for Mar’25 at 4.5%/ 2.2%/ 0.5% respectively;

· Accelerated Provision as of Jun’25 at ₹ 23 Crore; Provision coverage ratio as of Jun’25 is 73%#

v Deposits

· Deposits at ₹ 38,619 Crore as of Jun’25 up 18.8% YoY / 2.6% QoQ

· CASA at ₹ 9,381 Crore up 12.6% YoY with CASA ratio at 24.3% as of Jun’25

· Retail TD^ + CASA continues to grow and as of Jun’25 is ₹ 27,883 Crore, up 16% YoY

v Financials

· Q1FY26 PAT of ₹103 Crore up 24% QoQ

· Credit Cost for Q1 FY26 at ₹225 Crore, including accelerated provision of ₹ 23 Crore

· Q1FY26 RoA / RoE at 0.8% / 6.7%

v Capital and Liquidity

· Capital adequacy ratio at 22.8%

· Ample liquidity with Average Daily LCR for Jun’25 was 156%

Mr. Sanjeev Nautiyal, MD & CEO, Ujjivan Small Finance Bank said “In Q1FY26, we delivered robust 11% YoY growth in our gross loan book this was backed with strong momentum across secured segment which grew 63% YoY. The disbursements for the quarter at ₹ 6,539 Crore, up 24% YoY. Our total deposits grew 19% YoY to ₹38,619 crores. CASA deposits were up 13% at ₹ 9,381 Crore. Retail TD plus CASA deposits stood at ₹27,884 crores, registering a 16% growth YoY and contributing 72% to total deposits. Our cost of funds remained at 7.6% in Q1 and are expected to reduce in upcoming quarters since we have reduced the peak FD rates by 65 basis points and SA rates have been selectively re-calibrated up to 100 basis points.

The MFIN Guardrails 2.0, have been fully adopted by the Bank effective 1st April 2025. While we had anticipated a slower disbursement, we see that demand scenario continues to improve and Q1 disbursement in Group Loan was 2% higher than Q4. We stay aligned to this new operating framework and are focusing on deeper existing customer engagement and opportunities to acquire new customers. In Micro Banking nearly 1.1 lakh new customers were added in Q1 and nearly 34,000 customers were graduated from group loan to individual lending and also migrated substantial customers to secured products of Gold, Vehicle and Micro Mortgages, a testament to our efforts in nurturing credit-worthy borrowers and driving sustainable growth.

The recent regulatory change of reducing PSL requirement for SFB’s from 75% to 60% enhances flexibility to calibrate portfolio mix. The Reserve Bank of India took various steps starting February’25 including reduction of policy repo rate and continuous liquidity infusion. We believe these measures would bring down the cost of funds and increase demand in rate sensitive segments.

PAT for Q1 at ₹103 Crore is up 24% QoQ. RoA increased 12 bps to 0.8% and RoE increased 114 bps at 6.7%. Other income saw robust growth of 26% YoY lead by treasury income. Credit Cost was lower QoQ at ₹225 Crore including accelerated provision of ₹23 Crore. For FY26 we expect to grow advances around 20% with a credit cost in the range of 2.3% to 2.4% of average gross advances. RoE to be around 10% to 12% and RoA to be around 1.2% to 1.4%.