Ujjivan Small Finance Bank Reports 207% Jump in Q1 Net Profit at ₹317 Crore

Ujjivan Small Finance Bank (SFB) reported a remarkable 207 per cent year-on-year (Y-o-Y) surge in net profit to ₹317 crore for the quarter ended June (Q1FY27), propelled by healthy income growth and lower credit costs. Sequentially, the net profit rose 12 per cent from ₹282 crore. Net interest income (NII) increased by 38.6 per cent Y-o-Y to ₹1,186 crore, while other income experienced a 3 per cent rise to reach ₹257 crore. Credit costs dropped significantly by 43 per cent Y-o-Y to ₹127 crore. The bank’s net interest margin (NIM) stood firm at 8.5 per cent for Q1FY27, unchanged from the March quarter and up from 7.7 per cent a year earlier.

Loan Book Expansion and Deposit Growth:
The bank experienced robust growth across its lending and deposit portfolios during the quarter. The gross loan book grew by 28.9 per cent Y-o-Y and 5.5 per cent quarter-on-quarter (Q-o-Q) to reach ₹42,903 crore. The secured loan book rose by 42.7 per cent Y-o-Y and 7.8 per cent Q-o-Q to total ₹21,638 crore. Disbursements reached a record high for a June quarter, increasing by 41.4 per cent Y-o-Y to ₹9,245 crore. Additionally, deposits advanced 24.6 per cent Y-o-Y and 5.4 per cent Q-o-Q to ₹48,129 crore, with low-cost Current Account and Savings Account (CASA) deposits growing 37.8 per cent Y-o-Y to ₹12,930 crore.

Asset Quality Improvements and Management Outlook:
Asset quality showed steady enhancement over the quarter, with the gross non-performing asset (GNPA) ratio improving to 2.17 per cent as of June 30, 2026, down from 2.27 per cent at the end of March, and the net NPA ratio improving to 0.34 per cent from 0.43 per cent over the same timeframe. Commenting on the results, Carol Furtado, Executive Director of Ujjivan Small Finance Bank, noted that strong performance across asset products offset macroeconomic headwinds, boosting confidence in achieving the FY27 asset growth target of 25 per cent. Furtado highlighted that ongoing investments in branch expansion, branding, technology, and analytics will continue through FY27, while operating expenses are projected to reduce to around 6.4 per cent of average assets. Consequently, the FY27 credit cost guidance has been revised to 0.9–1 per cent of average total assets, and the Return on Assets (RoA) guidance has been upgraded to 1.8–2 per cent.