Ujjivan Small Finance Bank Q1 results 2026: Net profit jumps 200% to ₹317 crore, NII up 38% YoY

Ujjivan Small Finance Bank Q1 results 2026: Banking company Ujjivan Small Finance Bank posted strong financial results for the quarter ending on 30 June 2026 on Thursday, 23 July.

Ujjivan Small Finance Bank share price, which had fallen nearly 4% earlier in the session today, recovered all their losses and moved into positive territory following the earnings announcement. The stock climbed as much as 1.63% to ₹66.10 on the NSE.

Ujjivan Small Finance Bank reported its highest-ever quarterly net interest income (NII) of ₹1,186 crore in the first quarter of FY27, marking a 38.6% year-on-year (YoY) increase. Its net interest margin (NIM) stood at 8.5% during the quarter, reflecting healthy growth in core lending operations.

Operational efficiency also improved significantly, with the cost-to-income ratio declining to 62.0% in Q1 FY27 from 67.0% a year ago, an improvement of 497 basis points (bps). The company also posted its highest-ever quarterly pre-provision operating profit (PPOP) of ₹548 crore, up 52.0% YoY.

Profitability witnessed a sharp jump during the quarter, with profit after tax (PAT) surging 206.7% YoY to ₹317 crore in Q1 FY27.

Return ratios also strengthened considerably, with return on assets (RoA) rising to 2.2%, up 131 bps YoY, while return on equity (RoE) improved to 18.2%, an increase of 1,145 bps from the year-ago period.

“Despite ongoing global market uncertainties, domestic high-frequency economic indicators have shown stability. RBI maintained its policy repo rate at 5.25% with a neutral stance, projecting a recalibrated real GDP growth for FY27 at 6.6%. Inflation is staying within the defined band for the full year of 5.1%, while noting that the banking sector remains resilient with healthy credit demand and steady deposits," said Carol Furtado, ED, Ujjivan Small Finance Bank.

The bank reported a healthy growth in its business during the June quarter, with total deposits rising 24.6% YoY and 5.4% sequentially to ₹48,129 crore. The bank's CASA (Current Account Savings Account) deposits increased 37.8% from a year ago to ₹12,930 crore, taking the CASA ratio to 26.9%, reflecting an improvement in its low-cost deposit base.

The bank's gross loan book stood at ₹42,903 crore, registering a growth of 28.9% year-on-year and 5.5% quarter-on-quarter. Its secured loan portfolio continued to witness strong traction, rising 42.7% from the year-ago period and 7.8% sequentially to ₹21,638 crore.

The secured loan book accounted for 50.4% of the overall advances, highlighting the bank's focus on strengthening its secured lending portfolio.

On the asset quality front, the bank posted a sequential improvement in its gross non-performing assets (GNPA) and net non-performing assets (NNPA). GNPA declined to 2.17% as of June 2026 from 2.27% in March 2026, while NNPA improved to 0.34% from 0.43% over the same period, indicating better credit quality.

Futado further said, "Strong performance across asset products has more than offset macroeconomic headwinds, reinforcing confidence in achieving the FY27 asset growth target of 25%. Investments in future capacity building through branch expansion, branding initiatives, and enhanced technology and analytics capabilities began ramping up towards the end of Q1 and will continue through FY27.

However, the delayed commencement of these expenses, combined with ongoing operating efficiency gains, is expected to reduce FY27 operating expenses to around 6.4% of average assets, lower than previously anticipated. Asset quality trends remain encouraging, with credit cost at 0.9% and absolute slippages lower than expected during the quarter. Consequently, FY27 credit cost guidance has been revised to 0.9%–1.0% of Average Total Assets. Our FY27 RoA guidance is upgraded to 1.8% to 2.0%," it said.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

Vaamanaa covers business and stock market ...