Stock Report

Ujjivan Small Finance Bank Reports Robust Q1 Performance with Total Deposits Hitting ₹48,307 Crore

Posted On : 2026-07-03 19:58:17( TIMEZONE : IST )

Ujjivan Small Finance Bank Limited has released its key business highlights for the first quarter of the 2026-27 fiscal year ending June 30, 2026. The bank reported strong double-digit year-on-year growth across its credit and deposit portfolios, alongside stable asset quality and high collection efficiency metrics.

The provisional data indicates that the bank's total secured book has now crossed half of its overall loan composition, reflecting an ongoing structural shift toward secured lending.

Strong Growth in Deposits and CASA Mix

The bank's liability franchise demonstrated healthy momentum, with total deposits climbing to ₹48,307 crore as of June 30, 2026. This marks a robust year-on-year expansion of 25.1% compared to ₹38,619 crore recorded in the corresponding quarter of the previous year. On a sequential quarter-on-quarter basis, total deposits grew by 5.8% over the ₹45,668 crore registered at the close of March 2026.

Within the deposit mix, Current Account Savings Account (CASA) deposits grew by an impressive 37.8% year-on-year to stand at ₹12,930 crore, up from ₹9,381 crore in June 2025. Sequentially, CASA dipped marginally by 1.0% against the ₹13,062 crore logged in March 2026. The bank's overall CASA ratio improved to 26.8% in the current quarter, up from 24.3% in the same period last year, though it cooled slightly from the 28.6% reported in the previous sequential quarter. Meanwhile, the bank's credit-deposit ratio stabilized at 88.8%, compared to 86.2% year-on-year and 89.0% quarter-on-quarter.

Loan Portfolio Crosses ₹42,900 Crore Led by Vehicle and Gold Segments

Ujjivan's gross loan book reached ₹42,903 crore during the quarter, indicating an annual expansion of 28.9% over the ₹33,287 crore posted in June 2025, and a sequential increase of 5.5% over the ₹40,655 crore recorded in March 2026. The total secured book expanded by 42.2% year-on-year to reach ₹21,555 crore, successfully elevating the total proportion of secured assets to 50.2% of the bank's entire loan book.

A granular breakdown of the gross loan book highlights diverse performance across business lines:

Group Loans and Individual Loans: Group loans closed at ₹15,185 crore, growing 17.2% annually, while individual loans grew 16.0% year-on-year to reach ₹6,186 crore.

Housing and MSME Finance: Housing loans (including micro mortgages) surged 40.8% year-on-year to touch ₹11,210 crore. The MSME book witnessed an annual expansion of 54.0%, closing at ₹3,470 crore.

Financial Institutions Group (FIG): The portfolio advanced 17.7% year-on-year to reach ₹3,293 crore.

Vehicle and Gold Loans: Vehicle loans grew significantly by 85.0% year-on-year to reach ₹1,036 crore. Gold loans emerged as the fastest-growing asset class, skyrocketing 248.1% year-on-year to reach ₹1,020 crore, compared to just ₹293 crore in June 2025.

Agri Banking and Others: Agri banking doubled annually by 101.0% to touch ₹810 crore, while other segments (including staff loans and overdrafts against fixed deposits) contracted slightly by 4.5% year-on-year to stand at ₹692 crore.

Disbursement Activity and Asset Quality Trends

Total quarterly disbursements reached ₹9,252 crore, representing a sharp annual expansion of 41.5% against the ₹6,539 crore disbursed in the first quarter of the previous fiscal year. Sequentially, total credit rollout moderated by 5.7% from the high-base closing quarter of March 2026, which saw disbursements of ₹9,811 crore.

Disbursements during the quarter were anchored by group loans at ₹3,354 crore, followed by financial institutions group lending at ₹1,736 crore, individual loans at ₹1,227 crore, and housing allocations at ₹1,138 crore. Quarterly disbursements for other verticals included ₹502 crore for MSME, ₹467 crore for gold loans, ₹239 crore for vehicle financing, ₹113 crore for agri banking, and ₹477 crore across miscellaneous categories.

The lender also reported an overall strengthening of its asset quality framework. The Portfolio at Risk (PAR) percentage fell remarkably on an annual basis to 3.58% in the current quarter, compared to 4.81% in June 2025, while ticking up marginally from 3.54% at the sequential close of March 2026.

The Gross Non-Performing Assets (GNPA) ratio improved to 2.17%, down from 2.52% year-on-year and lower than the 2.27% logged in the previous quarter. Total write-offs for the quarter stood at ₹68 crore, which is a steep decline from the ₹154 crore written off in June 2025, but a moderate increase from the ₹50 crore recorded in March 2026.

Furthermore, collection efficiency inside the bank's core microbanking bucket (covering both group and individual loans) remained highly resilient, registering at 99.68% for the quarter. This is an improvement over the 99.26% recorded in the same period last year, and aligns closely with the 99.76% collection efficiency posted at the end of the previous quarter.

Shares of Ujjivan Small Finance Bank Limited was last trading in BSE at Rs. 59.59 as compared to the previous close of Rs. 61.34. The total number of shares traded during the day was 8064022 in over 3159 trades.

The stock hit an intraday high of Rs. 62.87 and intraday low of 58.89. The net turnover during the day was Rs. 476810096.00.