Ujjivan Small Finance Bank shares soar nearly 8% on plans of raising ₹2000 crore via QIP; Check other factors

This comes after its Managing Director and Chief Executive, Sanjeev Nautiyal, told reporters on Monday that the bank is aiming to raise ₹2,000 crore capital via the qualified institutional placements (QIP) route in two years.

"We will be raising ₹2,000 crore capital in 18-24 months through the qualified institutional placement (QIP) route," Nautiyal said.

The microlender-turned-small finance bank also announced a slew of business plans, including expansion of the branch network to 1,150 from the present 752 and a nearly three-times growth in the loan book over the next five years.

With an eye on widening its revenue generation, the bank is targeting to get into streams such as issuing bank guarantees, forex, and also launching co-branding cards, he said, without specifying timelines for the same.

Its Chief Financial Officer, Sadananda Kamath, said the bank’s tech spends are over ₹250 crore per year, which includes ₹200 crore towards the "run" part of the business, while the remaining is towards newer initiatives.

Universal Bank application

Ujjain Small Finance Bank, whose application for transitioning into a universal bank is pending with the RBI, will have to spend an additional ₹500 crore on technology initiatives if the central bank grants it a go-ahead, Kamath said.

Nautiyal said he is confident of bagging the coveted licence, given its credibility and track record, and reiterated that he expects a final call on the issue by the end of 2025.

He said there have been a series of exchanges with the regulator as part of the licence-granting process, and a panel of relevant senior officials will be taking a call on the matter now.

Ujjivan SFB reveals strategy to reach ₹1 lakh crore in gross loan book

In a regulatory filing on September 8, the bank revealed a strategic roadmap to achieve a gross loan book (GLB) of ₹1 lakh crore by FY30, building upon the progress it has made since receiving its small finance bank licence in 2017.

Its gross loan book stood at ₹33,287 crore in Q1FY25, as against ₹7,560 crore in FY17.

The bank has steadily diversified its loan portfolio, with secured lending rising to 46% during the first quarter of FY26, compared to 16% in FY19. It also plans to increase the share of its secured loan book to about 65%-70%, bolstered by growth in affordable housing, micro mortgages, MSME lending, vehicle finance, gold loans, and agri loans.

The stock was trading 6.75% higher at ₹47.15 per equity share, at around 1:18 pm.

Ujjivan Small Finance Bank has a total market capitalisation of ₹9,146.94 crore, as of September 9, 2025, according to data on the NSE.