Ujjivan SFB Q3 Results: Profit Zooms 71% as NII Crosses Rs 1,000 Crore Mark

DSIJ Intelligence-1Categories: Mindshare, Trendingjoin us on whatsappfollow us on googleprefered on google

Ujjivan SFB Q3 Results: Profit Zooms 71% as NII Crosses Rs 1,000 Crore Mark

Asset quality showed marked improvement during the quarter, with the Gross Non-Performing Assets (GNPA) ratio declining to 2.39 per cent and Net NPA falling to 0.58 per cent.

Bank-ltd-287237">Ujjivan Small Finance Bank achieved a significant financial milestone in Q3 FY26, reporting its highest-ever quarterly Net Interest Income (NII) of Rs 1,000 crore, a 12.8 per cent increase year-on-year. This growth was underpinned by record-breaking disbursements of Rs 8,293 crore and a strategic expansion of Net Interest Margins (NIM) to 8.23 per cent. The bank's profitability saw a substantial surge, with Profit After Tax (PAT) rising 70.8 per cent YoY to Rs 186 crore. These results were further supported by improving return metrics, as the Return on Assets (RoA) climbed to 1.5 per cent and the Return on Equity (RoE) reached 11.5 per cent.

The bank's balance sheet demonstrated robust momentum, with deposits growing 22.4 per cent YoY to reach Rs 42,223 crore, notably outpacing the loan book growth. The gross loan book stood at Rs 37,057 crore, representing a 21.6 per cent YoY increase, driven by a deliberate shift toward a more diversified and stable portfolio. The secured loan segment, comprising housing, MSME, and vehicle loans, grew nearly 49 per cent YoY to Rs 17,825 crore. This shift increased the secured book's share to 48.1 per cent of the total portfolio, up from 39.3 per cent in the previous year, reflecting a successful long-term diversification strategy.

Asset quality showed marked improvement during the quarter, with the Gross Non-Performing Assets (GNPA) ratio declining to 2.39 per cent and Net NPA falling to 0.58 per cent. Collection efficiency in the micro-banking segment reached a high of 99.7 per cent for December 2025, while the Provision Coverage Ratio (PCR) strengthened to 76 per cent. Backed by a healthy capital adequacy ratio of 21.6 per cent and strong liquidity buffers, the bank is well-positioned to maintain this trajectory of sustainable growth within a conducive macroeconomic environment.

DSIJ’s Flash News Investment (FNI) is India’s #1 stock market newsletter, providing weekly insights and actionable stock picks for short-term & long-term investments. Download Detailed Note Here

About Ujjivan Small Finance Bank Limited:

Ujjivan Small Finance Bank Limited is a Scheduled Commercial Bank serving 99.6 lakh customers through 777 branches across 339 districts in 26 states and Union Territories, supported by robust digital channels. The Bank offers a diversified portfolio spanning across Affordable Housing, MSME, Agri, Vehicle, Gold, Micro-Mortgage, FIG, and microfinance (group and individual) loans. As of December 31, 2025, Ujjivan’s gross loan book stood at Rs 37,057 Crore, with deposits of Rs 42,223 crore and a Net worth of Rs 6,519 crore. The Bank is rated AA- (Stable) for long-term facilities and A1+ for short-term instruments by CARE Ratings and CRISIL, reflecting the sustained strength of the bank's performance and balance sheet.

Disclaimer: The article is for informational purposes only and not investment advice.