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Ujjivan Small Finance Bank Reports Q1 FY27 Net Profit Rise of 206.7% YoY to ₹317 Crore; Upgrades Full-Year RoA Guidance

Posted On : 2026-07-24 10:15:56( TIMEZONE : IST )

Ujjivan Small Finance Bank Limited (BSE: 542904; NSE: UJJIVANSFB) today announced its financial results for the first quarter ended June 30, 2026 (Q1 FY27), delivering record-high quarterly Net Interest Income (NII) and Pre-Provision Operating Profit (PPoP).

Driven by strong credit demand, expanding deposit shares, and asset quality improvements, the bank has officially revised its full-year FY27 Return on Assets (RoA) guidance upward to 1.8%-2.0%.

Executive Financial Highlights

Net Profit (PAT): Surged 206.7% year-on-year (YoY) to ₹317 crore in Q1 FY27.

Net Interest Income (NII): Reached a record high of ₹1,186 crore, registering a 38.6% YoY growth.

Net Interest Margin (NIM): Expanded by 80 basis points YoY to 8.5% for the quarter.

Pre-Provision Operating Profit (PPoP): Rose 52.0% YoY to reach a record quarterly high of ₹548 crore.

Cost-to-Income Ratio: Improved by 497 bps YoY to 62.0% in Q1 FY27, compared to 67.0% in Q1 FY26.

Return Metrics: Return on Assets (RoA) stood at 2.2% (up 131 bps YoY), while Return on Equity (RoE) expanded by 1,145 bps YoY to 18.2%."The bank delivered another quarter of diversified business growth along with branch expansion, taking branch count to 814 as of Jun'26. Strong performance across asset products has more than offset macroeconomic headwinds, reinforcing confidence in achieving the FY27 asset growth target of 25%. Consequently, our FY27 RoA guidance is upgraded to 1.8% to 2.0%." - Ms. Carol Furtado, Executive Director, Ujjivan Small Finance Bank.

Deposit & Liability Profile

Total deposits grew 24.6% YoY and 5.4% sequentially (QoQ) to reach ₹48,129 crore as of June 30, 2026. The bank maintained a comfortable Credit-to-Deposit (CD) ratio of approximately 89% in a tight liquidity environment.

CASA Deposits: Rose 37.8% YoY to ₹12,930 crore, taking the CASA ratio to 26.9%.

Cost of Funds: Improved significantly to 6.9% for Q1 FY27, down 71 bps YoY and down 11 bps QoQ.

Customer Initiatives: Customer adoption grew strongly through the Ivory program, expanded digital mutual fund distribution, insurance cross-selling, and an upcoming co-branded credit card offering for deposit clients.

Asset Book & Business Line Growth

Gross Loan Book (GLB) expanded 28.9% YoY and 5.5% QoQ to ₹42,903 crore. The bank recorded its highest-ever Q1 disbursements at ₹9,245 crore, up 41.4% YoY.

Portfolio Breakdown

Secured Book Transformation: The secured portfolio grew 42.7% YoY and 7.8% QoQ to ₹21,638 crore, now accounting for 50.4% of the total gross loan book.

Housing Loans: Affordable Housing Loans and Micro Mortgages combined grew 40.8% YoY to ₹11,210 crore.

MSME Portfolio: Expanded 54.0% YoY to ₹3,470 crore.

Micro Banking: Grew 16.8% YoY to ₹21,371 crore, supported by 1.72 lakh new customer acquisitions during the quarter.

Emerging Portfolios: Newly introduced business verticals crossed key milestones, with Gold Loans and Vehicle Loans reaching ₹1,020 crore and ₹1,036 crore, respectively.

Asset Quality and Capital Position

Asset quality metrics strengthened across board, driven by steady collection efficiencies and lower absolute slippages.

Gross NPA (GNPA): Reduced by 36 bps YoY to 2.17% in June 2026, down sequentially from 2.27% in March 2026.

Net NPA (NNPA): Improved by 37 bps YoY to 0.34% in June 2026, down sequentially from 0.43% in March 2026.

Provision Coverage Ratio (PCR): Strengthened to 85% as of June 2026, compared to 73% as of June 2025 and 81% as of March 2026.

Collection Efficiency: Micro Banking Bucket-X collection efficiency remained stable at 99.68% for the quarter. Portfolio at Risk (PAR) dropped to 3.58% in June 2026 from 4.81% in June 2025.

Capital Adequacy & Liquidity: Capital Adequacy Ratio (CRAR) stood at a healthy 20.36%, while the average Liquidity Coverage Ratio (LCR) for Q1 FY27 stood at 132%.

Forward Outlook & Guidance Revisions

Supported by lower-than-expected credit costs (0.9% for the quarter) and operating efficiency gains, Ujjivan Small Finance Bank updated its full-year guidance as follows:

RoA Guidance: Upgraded to 1.8% - 2.0% for FY27.

Credit Cost Guidance: Revised downward to 0.9% - 1.0% of Average Total Assets.

Operating Expenses: Expected to settle around 6.4% of average assets due to delayed commencement of capacity-building expenditures.

Asset Growth Target: Reaffirmed at 25% for FY27.

Ms. Carol Furtado, ED Ujjivan Small Finance Bank said "Despite ongoing global market uncertainties, domestic high-frequency economic indicators have shown stability. RBI maintained its policy repo rate at 5.25% with a neutral stance, projecting a recalibrated real GDP growth for FY27 at 6.6% and inflation staying within defined band with full year of 5.1%, while noting that the banking sector remains resilient with healthy credit demand and steady deposits.

The bank delivered another quarter of diversified business growth along with branch expansion, taking branch count to 814 as of Jun'26. Deposit grew by 24.6% YoY/ 5.4% QoQ to ₹48,129 Crore and Gross Loan Book reached ₹42,903 Crore, growing 28.9% YoY / 5.5% QoQ.

In a tight liquidity scenario, we maintained comfortable CD Ratio at around 89%. To adjust for evolving market scenario, we effected rate increases on key buckets in line with our intended ALM outcome. CASA Deposit grew to ₹12,930 Crore, up 37.8% YoY. Deposit customer initiatives continue gaining traction, led by strong Ivory programme growth. Improved insurance crosssell, rising mutual fund adoption through digital channels, and the upcoming co-branded credit card enhance engagement.

The secured loan portfolio delivered strong momentum in Q1FY27, growing 42.7% YoY / 7.8% QoQ to ₹21,638 crore, accounting for 50.4% of the gross loan book. Quarterly disbursements increased 41.4% YoY to ₹9,245 crore. The micro banking portfolio grew 16.8% YoY in Q1 to ₹21,371 crore, supported by robust Bucket X collection efficiency of 99.68% and new customer acquisition of 1.72 lakh. Vehicle finance and gold loan portfolios crossed the ₹1,000 crore milestone. Housing comprising of Affordable Housing Loans and Micro Mortgage grew 40.8% YoY to ₹11,210 Cr and MSME grew 54% YoY to ₹3,470 Cr. Bank level asset quality strengthened with lower GNPA/NNPA to 2.17% / 0.34% and improved provision coverage ratio of 85%.

Net Interest Margin (NIM) improved to 8.5%, up 80 bps YoY with record NII at ₹1,186 Cr. Cost to Income improved to 62.0% down 497 bps YoY resulting in record PPoP at ₹548 Cr. PAT stood at ₹317 Crore up 206.7% YoY. RoA at 2.2%, up 131 bps YoY with RoE at 18.2% up 1,145 bps YoY.

Strong performance across asset products has more than offset macroeconomic headwinds, reinforcing confidence in achieving the FY27 asset growth target of 25%. Investments in future capacity building through branch expansion, branding initiatives, and enhanced technology and analytics capabilities began ramping up towards the end of Q1 and will continue through FY27. However, the delayed commencement of these expenses, combined with ongoing operating efficiency gains, is expected to reduce FY27 operating expenses to around 6.4% of average assets, lower than previously anticipated. Asset quality trends remain encouraging, with credit cost at 0.9% and absolute slippages lower than expected during the quarter. Consequently, FY27 credit cost guidance has been revised to 0.9%-1.0% of Average Total Assets. Our FY27 RoA guidance is upgraded to 1.8% to 2.0%.

Shares of Ujjivan Small Finance Bank Limited was last trading in BSE at Rs. 68.83 as compared to the previous close of Rs. 65.06. The total number of shares traded during the day was 8711971 in over 23208 trades.

The stock hit an intraday high of Rs. 72.20 and intraday low of 61.68. The net turnover during the day was Rs. 595320195.00.