Ujjivan SFB Q2 business update: Deposits soar 15%, loans and asset quality improve

Ujjivan Small Finance Bank announced robust financial performance for Q2, reflecting steady growth across key metrics. Total deposits surged 14.8% year-on-year (YoY) to ₹39,010 crore, up from ₹34,070 crore in the same quarter last year. The bank’s CASA (Current Account Savings Account) deposits saw an even stronger increase of 22.1% YoY, reaching ₹10,782 crore compared to ₹8,832 crore a year ago.

The credit-deposit ratio remained stable at 88%, slightly up from 87% in the previous period, while the gross loan book expanded by 14% YoY to ₹34,588 crore from ₹30,343 crore. Disbursements witnessed a significant jump of 48% YoY, totaling ₹7,958 crore versus ₹5,376 crore last year.

Asset quality showed improvement, with the Gross Non-Performing Assets (GNPA) ratio declining to 2.46% from 2.52% in the previous quarter and 2.51% YoY. The results underscore Ujjivan’s balanced growth and strong operational efficiency.

Earlier, USFB said it is planning to raise around ₹2,000 crore over the next 18-24 months through a Qualified Institutional Placement (QIP)

to support its long-term growth strategy, even as it awaits a decision from the Reserve Bank of India (RBI) on its application for a universal banking license.

USFB reported a challenging first quarter with a 65.7% decline in net profit to ₹103.2 crore for the quarter ended June 30, down from ₹301 crore a year earlier, impacted by higher bad loans and lower interest income. Net interest income (NII) dropped 9% year-on-year to ₹855.8 crore from ₹941 crore.

Asset quality weakened sequentially, with gross non-performing assets (GNPA) rising to ₹834 crore or 2.52% of total advances, up from ₹696 crore or 2.18% in the previous quarter. Net NPA increased to ₹226 crore or 0.70%, compared with ₹152 crore or 0.49% in the March quarter.

However, the bank showed strong growth in other areas. The gross loan book increased 11% YoY to ₹33,287 crore, driven by secured segments that now account for 46% of the portfolio. Secured loan disbursements surged 63% YoY to ₹15,162 crore. Deposits rose 19% YoY to ₹38,619 crore, with CASA deposits growing 13% to ₹9,381 crore. Retail term deposits and CASA together contributed 72% of total deposits.