Ujjivan Small Finance Bank Q2FY26 profit rises 18% QoQ to ₹122 cr; deposits up 15% Y-o-Y
Bengaluru: Ujjivan Small Finance Bank (Ujjivan SFB) reported strong business growth for the quarter ended September 2025, led by record disbursements, improving asset quality, and a rise in profitability.
According to the bank’s performance summary, deposits stood at ₹39,211 crore as of September 2025, up 15.1 percent year-on-year.
CASA deposits grew 22.1 percent to ₹10,783 crore, taking the CASA ratio to 27.5 percent. The bank’s cost of funds eased to 7.3 percent from 7.6 percent in the previous quarter.
On the lending side, disbursements hit an all-time high of ₹7,932 crore, up 47.6 percent from the year-ago period and 21.3 percent sequentially.
The gross loan book expanded 14 percent year-on-year to ₹34,588 crore, with secured loans forming 46.8 percent of the total as of September 2025, compared with 34.9 percent a year earlier.
Micro banking disbursements rose 29.3 percent year-on-year to ₹4,259 crore, while the micro banking book inched up 1.5 percent sequentially to ₹18,570 crore.
Asset quality continued to strengthen, with the bank’s portfolio at risk, gross NPA, and net NPA improving to 4.45 percent, 2.45 percent, and 0.67 percent, respectively, as of September 2025.
The provision coverage ratio stood at 73 percent. Collection efficiency in the Group and Individual Loan segments remained high at 99.5 percent, and the overall SMA level fell to 1.99 percent — the lowest since Q1FY25.
On the financial front, Ujjivan SFB reported a net profit of ₹122 crore for Q2FY26, an 18.2 percent sequential increase. Pre-provision operating profit (PPoP) rose 9.6 percent to ₹395 crore, while net interest income increased 7.7 percent to ₹922 crore, reversing a three-quarter decline.
Return on assets (RoA) stood at 1.0 percent and return on equity (RoE) at 7.7 percent for the quarter.
The bank’s capital adequacy ratio was a comfortable 21.4 percent, with Tier I capital at 19.9 percent, underscoring a strong capital position.
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