Ujjivan SFB's loan book grows 28.9% in Q1, asset quality improves
Gross loans cross ₹42,903 crore, led by housing and MSME; CASA ratio slips to 26.8% and secured share rises above 50%.
What's new
- Gross loan book of ₹42,903 crore, up 28.9% YoY and 5.5% QoQ.
- CASA deposits surge 37.8% YoY but ratio dips to 26.8% from 28.6% QoQ.
- GNPA improves to 2.17% from 2.52% YoY; secured book now 50.2%.
Why this matters
Ujjivan SFB is delivering broad-based growth across housing, MSME, and new retail segments while improving asset quality. The dip in CASA ratio is the only mild strain in an otherwise strong quarter, and the shift to a 50%-plus secured book lowers risk.
What we're watching
- Whether the CASA ratio stabilises or erodes further in coming quarters.
- Gold loan and vehicle finance traction, which drove 41.5% disbursement growth.
- Final audited numbers and any guidance on net interest margin.
The full read
Ujjivan Small Finance Bank is growing fast and cleaning up. Gross loans hit ₹42,903 crore, up 28.9% year on year, with strength across housing, MSME, and newer verticals like vehicle and gold loans. Disbursements jumped 41.5% to ₹9,252 crore. Deposits kept pace at 25.1% growth, and CASA deposits surged 37.8%, though the ratio slipped to 26.8% from 28.6% (the only soft spot). Asset quality is better: GNPA fell to 2.17% from 2.52%, and PAR is at 3.58%. The secured book now accounts for 50.2%, a meaningful shift. For a mid-cap bank, this kind of broad-based acceleration is rare. The open question is whether it can hold the CASA ratio while maintaining this growth clip.
Questions answered
- How strong was loan growth in the June 2026 quarter?
- Gross loans grew 28.9% YoY and 5.5% QoQ to ₹42,903 crore, driven by housing, MSME, and new-age retail segments.
- Why did the CASA ratio fall despite a 37.8% surge in CASA deposits?
- Total deposits grew 25.1% YoY, but the CASA ratio slipped to 26.8% from 28.6% sequentially, likely because term deposits grew faster than CASA.
- How did asset quality fare in Q1?
- GNPA improved to 2.17% from 2.52% a year ago, and PAR fell to 3.58%, indicating steady collection efficiency and lower stress.
- What is the significance of the secured book crossing 50%?
- A secured loan share above 50% reduces the bank's risk profile and aligns with a strategy to migrate towards lower-risk assets, which could support credit costs.
- Are the numbers final or subject to change?
- The numbers are provisional and will undergo a limited review. Final audited figures may differ slightly.