Ujjivan Small Finance Bank Plans Rs.1 Lakh Crore Gross Loan Book by FY30

Ujjivan Small Finance Bank (Ujjivan SFB) has announced its long-term plan to achieve a Gross Loan Book (GLB) of ₹1 lakh crore by the financial year 2030. The roadmap builds on the progress made since the bank received its small finance bank licence in 2017. The bank said its growth will come from expanding its liability franchise, introducing a wider range of loan products, and creating cost-efficient operations to maintain steady profitability.

Diversified Loan Portfolio
Over the years, Ujjivan has been diversifying its loan portfolio. Secured lending has grown from 16% in FY19 to 46% by the first quarter of FY26. Going ahead, the bank wants to raise the share of secured loans to 65–70%. This will be driven by growth in affordable housing, micro mortgages, MSME lending, vehicle finance, gold loans, and agricultural loans. The bank also plans to add mid-corporate lending products. Its traditional micro banking portfolio, which mainly includes group loans, will continue to form the foundation, while customers are expected to gradually move to individual loans.

Liability Franchise
The bank has built a strong deposit base, with retail deposits such as CASA (Current Account and Savings Account) and retail term deposits making up 72% of its total deposits of ₹38,619 crore as of Q1FY26. CASA balances stood at ₹9,381 crore, contributing 24.3% of total deposits. Ujjivan aims to increase CASA to 35% by FY30. This growth will be supported by the expansion of its branch network from 752 to around 1,150 branches. Alongside this, the bank plans to expand cross-selling to customers and offer a wider range of products like IPO-ASBA, insurance, mutual fund distribution, remittances, and co-branded credit cards.

Profitability and Risk Profile
To strengthen profitability, Ujjivan will focus on improving its technology systems, hiring the right number of employees, controlling operational costs, and improving productivity. It will also ensure careful spending on new branches and infrastructure. The bank’s goal is to reduce its cost-to-income ratio to about 55%. With a strong credit underwriting and collection system, Ujjivan expects to achieve a Return on Assets (RoA) of 1.8–2.0% and a Return on Equity (RoE) of 16–18% by FY30.

Capital Strength
As of Q1FY26, Ujjivan reported a Capital Adequacy Ratio (CRAR) of 22.8% and Tier I capital at 21.2%, showing that it is comfortably capitalized. By focusing more on secured loans, which carry lower risk weights, the bank will be able to use its capital more efficiently and support long-term growth without needing to raise additional funds immediately.

CEO’s Statement
Commenting on the bank’s progress, Mr. Sanjeev Nautiyal, Managing Director & CEO of Ujjivan Small Finance Bank, said: “Our roadmap to a ₹1 lakh crore gross loan book by FY30 builds on the foundation established since becoming a small finance bank. Over this period, we have grown our gross loan book from ₹7,560 crore in FY17 to ₹33,287 crore in Q1FY26.”

He further added that the bank’s strategy includes expanding its branch network to around 1,150, increasing the secured loan book share to 65–70%, raising CASA to 35% of deposits, and doubling branch productivity. The bank expects annual loan book growth in the range of 20–25% and aims to achieve RoE of 16–18% and RoA of 1.8–2.0% by FY30. With a customer base of over 97 lakh spread across 26 states and union territories, Ujjivan said it is well-positioned to achieve these targets while focusing on mass, aspiring, and emerging affluent segments of India.