Ujjivan SFB Aims for ₹1 Lakh Crore Gross Loan Book by FY30

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Ujjivan SFB Targets ₹1 Lakh Crore Loan Book by FY30, Focuses on Secured Lending and CASA Growth

Ujjivan Small Finance Bank (Ujjivan SFB) has announced its strategic plan to reach a gross loan book (GLB) of ₹1 Lakh Crore by FY30. This growth builds on the foundation since obtaining its small finance bank license in 2017.

The bank's strategy centers on expanding its liability franchise, broadening its asset product range, and streamlining operations for sustained profitability.

Ujjivan is actively diversifying its loan portfolio. Secured lending has increased from 16% in FY19 to 46% as of Q1FY26. The lender aims to increase the share of secured loans to approximately 65%-70%, focusing on Affordable Housing, Micro Mortgages, MSME lending, Vehicle Finance, Gold Loans, and Agri Loans. The bank also intends to introduce products for Mid Corporate Lending.

Ujjivan has established a granular liability franchise with retail deposits (CASA and retail term deposits) constituting 72% of the total deposit base. As of Q1FY26, the total deposit base stood at ₹38,619 crore. CASA balances were reported at ₹9,381 crore, representing 24.3% of deposits as of Q1FY26. The long-term goal is to increase CASA to 35% of total deposits by FY30.

This CASA growth will be supported by an expanded branch network from 752 to approximately 1,150 branches, deeper cross-selling efforts, and a comprehensive suite of products, including IPO-ASBA, insurance, mutual fund distribution, remittances, and co-branded credit cards.

Ujjivan reported a CRAR of 22.8% and Tier I at 21.2% as of Q1FY26, indicating a strong capital position. The shift toward secured loans with lower risk weights enhances capital efficiency and provides headroom for long-term growth without requiring immediate capital raising.

Sanjeev Nautiyal, Managing Director & CEO of Ujjivan Small Finance Bank, commented, "Our roadmap to a ₹1 lakh crore gross loan book by FY30 builds on the foundation established since becoming a small finance bank. We have grown our gross loan book from ₹7,560 crore in FY17 to ₹33,287 crore in Q1FY26."

The bank's strategy includes expanding its branch network from 752 to around 1,150, increasing the secured share of the loan book to 65%-70%, raising CASA to 35% of deposits, and doubling branch productivity. Ujjivan expects annual Gross Loan Book growth in the range of 20%-25%, with the objective of achieving RoE of 16%-18% and RoA of 1.8%—2.0% in FY30. The bank serves a diversified customer base of over 97 Lakhs across 26 states & Union Territories.

Ujjivan Small Finance Bank Limited operates as a scheduled commercial bank in India, serving approximately 97 lakh customers through 754 branches and 613 ATMs/ACRs across 326 districts and 26 states and union territories. The gross loan book stands at ₹33,287 crore, with a deposit base of ₹38,619 crore as of June 30, 2025. The bank holds a credit rating of AA- (Stable)/A1+ from CARE/CRISIL.

Ujjivan SFB has been ranked 26th among India's Best Companies to Work for 2025 by the Great Place to Work® Institute.

The bank integrates CSR values with its business objectives, focusing on healthcare, disaster relief, livelihood for especially abled people, education, and community infrastructure development.