Ujjivan Small Finance Bank: Q3 FY26 Business Update

Executive Summary Ujjivan Small Finance Bank has reported a robust operational performance for the quarter ended December 31, 2025. The bank demonstrated strong momentum in both liability accretion and credit expansion, alongside a significant pivot towards secured lending and tangible improvements in asset quality. Key Operational Highlights Robust Deposit Mobilization: Total Deposits: Surged 22.2% YoY to ₹42,219 Cr (up 7.5% QoQ). CASA Traction: CASA deposits grew 33.1% YoY to ₹11,533 Cr. The CASA ratio improved to 27.3% (vs 25.1% in Q3FY25), indicating a strengthening low-cost liability franchise. CD Ratio: The Credit-Deposit ratio stood at a healthy 87.8%. Credit Growth & Diversification: Loan Book: Gross Loan Book expanded 21.6% YoY to ₹37,055 Cr. Secured Portfolio Focus: The bank is successfully executing its strategy to increase secured assets. The secured loan book grew 48.8% YoY to ₹17,829 Cr, with the secured book ratio rising to 48.1%. Segment Performance: Housing/Micro Mortgages grew 49.6% YoY (₹9,560 Cr), while MSME advances jumped 69% YoY (₹2,863 Cr). Disbursement Momentum: Total disbursements for Q3 FY26 stood at ₹8,311 Cr, registering a significant growth of 55% YoY. Group loan disbursements saw a sharp uptake, growing 70.7% to ₹3,464 Cr. Asset Quality & Efficiency Asset Quality Improvement: Gross NPA (GNPA) improved to 2.39% compared to 2.68% in the previous year. Risk Reduction: Portfolio at Risk (PAR) declined to 3.98% (vs 5.36% YoY), signaling improved portfolio health. Collections: Collection efficiency in the micro-banking segment remained robust at 99.70%.