Ujjivan Small Finance Bank reports strong Q2 FY'26 growth

Ujjivan Small Finance Bank reported strong performance for Q2 FY'26, with total deposits increasing 15.1% year-on-year to INR 39,211 crores. CASA grew by 22.1% year-on-year, reaching INR 10,783 crores and surpassing INR 10,000 crores for the first time. The cost of funds improved by 23 basis points quarter-on-quarter and 17 basis points year-on-year, with further benefits expected from CRR reduction.

Loan origination remained strong, with the highest-ever disbursements of INR 7,932 crores, up 48% year-on-year. The gross loan book grew 14% year-on-year to INR 34,588 crores, driven by a diversified asset suite and an increasing share of secured loans, now at 47%. Secured disbursements in Q2 FY'26 grew 78.8% year-on-year to INR 3,701 crores.

Net interest income stood at INR 922 crores, expanding by INR 65.7 crores quarter-on-quarter, with a Net Interest Margin (NIM) of 7.9%. The Bank maintains a strong capital position with a CRAR of 21.4% and expects a meaningful decline in credit cost in the second half of the fiscal year.