Ujjivan Small Finance Bank Ltd has reported a consolidated net profit of ₹1.03 billion for the quarter ended June 2025, navigating through higher provisioning and stable asset quality. Interest earned during the period stood at ₹16.19 billion, reflecting continued traction in its core lending operations.
Key Highlights From Q1 FY26 Performance
- Provisions and contingencies surged to ₹2.25 billion, indicating a cautious stance amid evolving credit risk dynamics
- Gross non-performing assets (GNPA) remained steady at 2.52 percent, suggesting effective portfolio monitoring and recovery efforts
- Net interest income benefited from strong disbursements in microfinance, MSME, and affordable housing segments
- Operating profit before provisions stood at ₹3.6 billion, supported by disciplined cost control and digital onboarding efficiencies
- NIM held steady at 7.7 percent, supported by high-yield microfinance and affordable housing portfolios
Strategic Developments And Risk Management
- The bank continues to diversify its loan book, with secured assets now contributing over 40 percent of total advances
- AI-led underwriting and real-time bureau integrations have helped contain slippages and improve early warning systems
- Liquidity coverage ratio remained robust at 130 percent, well above regulatory thresholds
Outlook
Despite elevated provisioning, Ujjivan SFB’s Q1 performance underscores its resilience and operational depth. With a stable GNPA and expanding interest income, the bank remains well-positioned to pursue its universal banking ambitions in FY26.
Sources: Economic Times, CNBC TV18, Moneycontrol, Business Standard, Ujjivan SFB Filings.