Banking Brilliance—Ujjivan SFB’s Q1 Growth Signals Strong Retail Pulse

Image Source: Business Today

Ujjivan Small Finance Bank Ltd. has reported strong growth in its June-quarter business update, with total deposits rising 18.8% year-on-year and the gross loan book rising by 10.7%. The performance is a testament to sustained momentum in the bank's retail-oriented approach and rising traction in secured lending.

Total deposits stood at about ₹32,500 crore, increasing from ₹27,360 crore in the same quarter last year. The CASA ratio of 25.6% was indicative of a stable low-cost deposit base. In lending, the gross loan book went up to ₹30,091 crore on the strength of secured products growth and disbursements of microfinance.

Key Points

Total Deposits: ₹32,500 crore, up 18.8% YoY
Gross Loan Book: ₹30,091 crore, up 10.7% YoY
CASA Ratio: 25.6%, led by strong retail deposit pull
Disbursements: ₹5,305 crore in the quarter
Asset Quality: Gross NPA at 2.3%, Portfolio at Risk (PAR) at 4.3%

Strategic Outlook

Ujjivan SFB continues to stay focused on diversifying the loan book, growth in proportion of secured lending, and improving asset quality. The bank is also in the process of transitioning to a universal banking license, with an application filed with the Reserve Bank of India earlier this year.

Sources: Ujjivan SFB – Financial Results & Business Update, NDTV Profit, Angel One, Moneycontrol, ICICI Direct