Ujjivan Small Finance Bank has shared a strategic roadmap to target a Rs 1 lakh crore loan book by FY30, an exchange filing by the SFB said, sending the shares sharply higher by over 3 percent on September 8. The lender added that it does not see any immediate need for raising capital, and aims to ramp up the secured loan book to 65-70 percent with CASA at 35 percent of its term deposits.
This growth will be supported by an expansion of the bank's branch network from 752 to nearly 1,150 branches, Ujjivan said, adding that it aims to increase cross-selling to its customer base, including offerings such as IPO-ASBA, insurance, mutual fund distribution, remittances and co-branded credit cards.
Sanjeev Nautiyal, Managing Director & CEO, Ujjivan Small Finance Bank said, "Our roadmap to a Rs 1 lakh crore gross loan book by FY30 builds on the foundation established since becoming a small finance bank. Over this period, we have grown our gross loan book from Rs 7,560 crore in FY17 to Rs 33,287 crore in Q1FY26." In five years, the SFB sees its average liability per branch to nearly double from Rs 51 crore to around Rs 102 crore.
The lender said aims to widen and build its secured loan book portfolio to nearly 65-70 percent. "Ujjivan has been gradually diversifying its loan portfolio with secured lending increasing from 16 percent in FY19 to 46 percent as on Q1FY26. The bank aims to raise the share of its secured loan book to approximately 65-70 percent, led by growth in Affordable Housing, Micro Mortgages, MSME lending, Vehicle Finance, Gold Loans and Agri Loans," the SFB said in a statement.
"The shift in asset book towards secured loans with lower risk weights not only enhances capital efficiency but also provides headroom to support long-term growth without immediate need for raising capital," the lender said.
Ujjivan said it now has a 'granular liability franchise' with retail deposits (CASA and retail deposits) forming 72 percent of the total deposit base of Rs 38,619 crore as of Q1FY26. The CASA balance stood at Rs 9,381 crore, which is 24.3 percent its total deposits, and the lender said it plan to take this to 35 percent of the total deposits by FY30, with Net Interest Margin (NIM) seen around 6-7 percent by FY30.
Additionally, the SFB is targetting to widen its product offering by adding solutions in the mid-corporate lending space, underscoring its reliance on micro banking portfolio of group loans, which is the foundation, with customers graduating to individual loans.
With an aim of profitable growth, the bank has committed to focus on optimising its digital stack, right-sizing the employee count and operational expenses. The SFB is hopeful of enhanced productivity and a 'prudent' rollout of branch and physical infrastructure. "These will enable us to bring our cost to income ratio close to 55%. Combining this with our credit underwriting and collections mechanism will help deliver RoA of 1.8%-2.0% through prudent leverage and RoE of 16-18 percent by FY30," Ujjivan SFB said.
On a YTD basis, shares of Ujjivan Small Finance Bank are higher by 28 percent.
The lender added that it remains comfortably capitalized as of Q1FY26.
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