Ujjivan SFB: Deposit growth and asset quality matter

### Ujjivan SFB: Deposit growth and asset quality matter Ujjivan Small Finance Bank Limited (NSE: UJJIVANSFB) focuses on retail banking, including microfinance and other small-ticket loans. Its performance depends on credit demand, deposit mobilisation and borrowers' repayment capacity. **Why it matters:** Diversifying beyond microfinance can reduce concentration risk over time. However, unsecured lending exposure and borrower stress can increase credit costs and put pressure on profitability. **My view:** The key factor is whether Ujjivan can grow its deposit base while maintaining disciplined lending. Loan growth alone is not enough; asset quality, funding costs and the mix of secured versus unsecured advances will shape sustainable earnings. **What to watch:** Gross and net NPAs, credit costs, collection efficiency, deposit growth, CASA ratio, net interest margin and the share of secured loans. **Stance:** Improving asset quality and a more diversified loan book would strengthen the outlook. Track these alongside valuation before forming an investment view. Disclosure: I am a SEBI Registered Research Analyst. This content is for educational purposes and is not a recommendation to buy or sell any security.