Ujjivan Small Finance Bank Reports Record Q2 PAT of ₹365 Crore and Board Approves ₹409 Crore Capital Raising

The Board of Directors of Ujjivan Small Finance Bank Ltd. (BSE: 542904; NSE: UJJIVANSFB) has approved a capital raise of ₹409 crore via preferential allotment, subject to shareholder approval. The preferential issue will feature participation from institutional investors including the International Finance Corporation (IFC), Bajaj Life Insurance Ltd., HDFC Life Insurance, and Aditya Birla Sun Life Insurance. Executed at a premium to the current book value per share (BVPS), the allotment is expected to result in an accretion of approximately ₹0.8 per share as of September 2026. Additionally, the bank enhanced its overall funding mix by expanding its securitization pool with a first tranche of ₹500 crore through Direct Assignment. In executive developments, Mr. Sanjeev Nautiyal has retired early on health grounds. The Nomination and Remuneration Committee (NRC) is currently selecting a candidate for the Managing Director position for regulatory submission, while Ms. Carol Furtado continues as Whole Time Director & Interim CEO.

Quarterly Financials and Asset Quality Performance:
For the second quarter ended September 30, 2026 (Q2 FY27), Ujjivan Small Finance Bank reported its highest-ever quarterly financial performance. Net Profit After Tax (PAT) surged 199.9% year-on-year to ₹365 crore (up 15.3% QoQ). Net Interest Income (NII) reached a record ₹1,244 crore, representing a 35% YoY growth, with Net Interest Margin (NIM) expanding 55 basis points YoY to 8.4%. Return on Assets (RoA) rose by 1.4% YoY to 2.4%, while Return on Equity (RoE) improved by 12% YoY to 19.7%, alongside an improved Cost-to-Income ratio of 62%. Asset quality metrics strengthened as Portfolio at Risk (PAR) declined to 3.57% (down 88 bps YoY). Gross NPA (GNPA) improved 35 bps YoY to 2.10%, Net NPA (NNPA) dropped 36 bps YoY to 0.31%, and the Provision Coverage Ratio (PCR) strengthened by 12% YoY to 85%.

Deposit Expansion and Portfolio Growth:
Total deposits crossed a key milestone to reach ₹50,643 crore, marking a 29.2% YoY increase. Current Account Savings Account (CASA) deposits reached ₹13,176 crore (up 22.2% YoY), maintaining a CASA ratio of 26.0%. Cost of Funds (CoF) stood at 6.9% for the quarter, reflecting a 0.4% YoY decline, while the bank introduced the ASBA facility for its retail client base. On the lending front, the Gross Loan Book expanded 32.1% YoY to ₹45,699 crore, driven by quarterly disbursements crossing the ₹10,000 crore threshold to reach ₹10,495 crore (up 32.3% YoY). The secured portfolio grew 47% YoY to ₹23,803 crore, bringing the total share of secured assets to 52.1%. Within specific loan segments, Affordable Housing crossed the ₹10,000 crore mark to hit ₹10,056 crore (up 31.4% YoY), Micro Mortgages expanded 85.7% to ₹2,031 crore, MSME lending grew 51.3% to ₹3,871 crore, Gold Loans surged 209.8% to ₹1,275 crore, Agri Banking expanded 79.2% to ₹914 crore, and Two-Wheeler financing rose 64.8% to ₹1,081 crore. Micro Banking assets stood at ₹22,037 crore with a collection efficiency of 99.71%.

Brand Strategy, Network Expansion, and Leadership View:
The bank launched a national brand campaign titled ‘Nothing Small About Us’ featuring actor Mr. R Madhavan as brand ambassador, projected to reach approximately 35 crore viewers across print, digital, and TV platforms. To support future operational expansion, Ujjivan SFB added 104 new branches and hired 1,335 employees during the first half of FY27, while acquiring approximately 2.0 lakh new customers during Q2 FY27. Commenting on the performance, Ms. Carol Furtado, Whole Time Director & Interim CEO, noted that the board-approved ₹409 crore preferential issue and ₹500 crore securitization expansion reflect the bank’s growth momentum. She highlighted that the record PAT of ₹365 crore and strong RoA and RoE ratios are supported by robust credit expansion, a growing deposit franchise, an increasing share of secured assets, and sustained financial discipline as the bank remains on track toward its 2.0% RoA guidance.