Ujjivan Small Finance Bank Limited — PPTs, 11-06-2025: Investor Presentation

1. Financial Highlights:

Ujjivan Small Finance Bank reported total income of ₹72.01 Bn in FY25, with interest earned at ₹63.54 Bn. Interest expenses rose to ₹27.18 Bn, leading to total costs of ₹55.11 Bn. Net profit declined to ₹7.26 Bn from ₹12.82 Bn last year, pressured by higher credit costs of ₹7.48 Bn. Gross advances stood at ₹313.9 Bn, deposits grew to ₹376.3 Bn, and net worth increased modestly to ₹60.83 Bn. Key ratios include a GNPA of 2.2%, NNPA of 0.5%, PCR at 78%, ROA of 1.6%, ROE of 12.4%, CRAR at 23.1%, and CASA ratio at 25.6%, supporting a stable cost of funds.

2. Strategic Initiatives & Growth Drivers:

The bank is expanding towards universal banking with applications underway, aiming to diversify into MSME loans, vehicle loans, gold loans, credit cards, and forex. Focus on digital customer acquisition, AI-driven credit risk models, and data analytics is intended to improve portfolio quality and operational efficiency. Enhancements like digital onboarding and multilingual apps cater to underpenetrated segments. Retail deposits grew robustly with 30%+ CAGR over five years, boosting CASA and customer base beyond 9.5 million.

3. Business Developments:

Ujjivan is broadening product offerings to include micro banking, affordable housing, micro mortgages, MSME, agri, gold, and vehicle loans. The loan book is shifting towards secured assets (43.5%), reflecting lower risk strategy. Partnerships in digital payments and Unified Lending Interface enhance customer experience. No recent acquisitions or major alliances reported.

4. Market Position & Competitive Advantage:

With 750+ outlets across 26 states and a strong urban-rural mix, Ujjivan serves largely retail customers (91% loans). Its AA-/A1+ rating underpins a solid liability franchise, with 71% retail deposits enabling low-cost funding. Professional management, strong governance, and tech integration provide operational strength. The bank’s portfolio quality ranks among the best in microfinance, supported by multiple industry awards.

5. Investor Implications:

Diversification towards universal banking and expanding product suite indicate positive growth potential. Strong capital adequacy and risk controls help absorb credit cost volatility. Digital and data-driven upgrades improve scalability and portfolio resilience. Investors should watch progress on universal banking approval and margin sustainability amid new credit segments. Stable asset quality and improved liability mix offer confidence, though near-term credit cost pressures require attention.