India · Delayed Price · Currency is INR Ujjivan Small Finance Bank Earnings Call Transcripts
Fiscal Year 2026
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Strong YoY growth in deposits and loans, with a strategic shift toward secured assets and robust asset quality. FY 2027 guidance targets 25% advances growth, stable NIM at 8.5%, and ROA of 1.6%, supported by capital raise and branch expansion.
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Q3FY26 saw robust growth in deposits and advances, record NII, and improved asset quality, with strong performance across microbanking, housing, and MSME segments. Cost of funds declined, credit costs are normalizing, and the bank remains on track to meet ROA and CASA targets.
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Q2 FY26 saw strong loan and deposit growth, improved NIM, and stable asset quality, with secured loans rising to 47% of the book. Credit costs are expected to decline in H2, and guidance for robust secured book growth and stable margins is maintained.
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Gross loans grew 11% YoY and secured portfolio mix improved, with strong disbursement growth in housing, MSME, and agri segments. Asset quality is stabilizing, with collection efficiency expected to normalize by Q3 and credit costs to decline by Q4.
Fiscal Year 2025
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Secured loan share rose to 44% of the portfolio, driving record disbursements and improved asset quality. FY25 PAT reached INR 726 crore with ROA at 1.6% and ROE at 12.4%. Guidance for FY26 will be provided with Q1 results.
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Secured loan book surged to 39% of total, with strong growth in affordable housing, MSME, and vehicle finance. Asset quality stabilized, credit cost guidance maintained, and digital banking initiatives expanded. Overall loan growth for FY25 guided at 8%-9%.
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Q2 FY25 saw modest loan growth and robust secured portfolio expansion, but microfinance stress led to higher credit costs and slippages. Retail deposits and CASA grew strongly, while margin compression and elevated credit costs are expected to persist through FY25.
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Q1 FY25 saw 19% year-over-year loan book growth and 22% deposit growth, with strong digital adoption and a focus on asset quality. Credit costs and NPA levels rose in select states, but guidance for 20% asset growth, 20% ROE, and credit costs below 1.7% is maintained.