Mumbai | Ujjivan Small Finance Bank Limited (BSE: 542904; NSE: UJJIVANSFB) on Tuesday announced its financial results for the quarter and nine months ended December 31, 2025, reporting its highest-ever quarterly Net Interest Income (NII) of ₹1,000 crore in the third quarter of FY26, underlining strong business momentum and improving profitability.
The bank also recorded its highest-ever quarterly disbursements of ₹8,293 crore during Q3 FY26, reflecting broad-based growth across both secured and unsecured lending segments.
Strong Growth in Assets and Disbursements
As of December 2025, Ujjivan SFB’s gross loan book stood at ₹37,057 crore, registering a robust growth of 21.6% year-on-year and 7.1% quarter-on-quarter. The share of secured loans increased significantly to 48.1% compared with 39.3% in December 2024, in line with the bank’s long-term diversification strategy.
Quarterly disbursements reached a record ₹8,293 crore, marking a growth of 54.7% year-on-year and 4.5% quarter-on-quarter. Microbanking disbursements were ₹4,688 crore, up 62.4% year-on-year and 10.1% sequentially. The microbanking gross loan book stood at ₹19,372 crore as of December 2025.
Improving Asset Quality and Collections
Asset quality showed continued improvement during the quarter. Portfolio at Risk (PAR), Gross Non-Performing Assets (GNPA), and Net Non-Performing Assets (NNPA) declined to 3.98%, 2.39%, and 0.58%, respectively, as of December 2025, compared with 5.36%, 2.68%, and 0.66% a year earlier.
Collection efficiency in both group and individual loan Bucket-X improved to 99.7% in December 2025. Provision Coverage Ratio (PCR) increased to 76%, reflecting stronger balance sheet resilience.
Deposits and Liquidity Remain Robust
Total deposits grew to ₹42,223 crore as of December 2025, registering a growth of 22.4% year-on-year and 7.7% quarter-on-quarter. CASA deposits rose to ₹11,535 crore, a 33.2% year-on-year increase, with the CASA ratio remaining healthy at 27.3% for the second consecutive quarter.
Retail term deposits plus CASA stood at ₹29,395 crore, growing 16.3% year-on-year. The cost of funds declined to 7.09% in Q3 FY26, down 25 basis points sequentially, supported by better liquidity management and deposit rate rationalisation.
Profitability Hits New Highs
The bank’s NII rose 12.8% year-on-year to ₹1,000 crore in Q3 FY26, while Net Interest Margin (NIM) improved by 33 basis points quarter-on-quarter to 8.23%. The cost-to-income ratio remained stable at 66% for the quarter and fell below 65% after adjusting for a one-time gratuity expense under the new labour code.
Profit after tax (PAT) surged 70.8% year-on-year to ₹186 crore in Q3 FY26. Return on Assets (RoA) improved to 1.5%, while Return on Equity (RoE) rose to 11.5%, reflecting sustained improvement in return metrics.
Capital and Outlook
Ujjivan SFB maintained a strong capital adequacy ratio of 21.6% and robust liquidity, with an average daily Liquidity Coverage Ratio (LCR) of 165.6% in December 2025.
Commenting on the performance, Managing Director and CEO Sanjeev Nautiyal said India’s favourable macroeconomic environment and strong GDP growth have supported credit expansion and asset quality improvement. He added that the bank’s focus on quality customer acquisition, improving deposit mix, declining cost of funds, and disciplined growth approach positions it well to deliver sustainable and profitable growth in the coming quarters.
