Ujjivan Small Finance Bank shares soar on revealing strategy to reach ₹1 lakh crore loan book

The share gained 3.4% over the week and 3.16% since the beginning of September. It has lost 10.22% since the beginning of July. On a year-to-date basis, the scrip has surged 30.26%.

This comes after the company announced a strategic roadmap to achieve a gross loan book (GLB) of ₹1 lakh crore by the 2029-30 fiscal year (FY30), building upon the progress it has made since it received its small finance bank licence in 2017. It grew its gross loan book to ₹33,287 crore in Q1FY25, as against ₹7,560 crore in FY17, the bank said in a regulatory filing.

It added that Ujjivan’s growth is rooted in a steady expansion of its liability franchise, deepening the reach of its asset product suite, and creating cost-optimised operations, which would result in higher sustained profitability.

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. Furthermore, it intends to increase the share of its secured loan book to about 65% to 70%, supported by growth in affordable housing, micro mortgages, MSME lending, vehicle finance, gold loans, and agri loans, the small finance bank stated.

“Additionally, aiming to increase the product suite by adding products for mid corporate lending. While the Micro Banking portfolio, which mainly comprises group loans, forms the foundation of the scale, as customers progressively graduate to individual loans,” the bank said.

As of Q1FY26, Ujjivan’s retail deposits, which include Current Account and Savings Account (CASA) and retail term deposits, comprised 72% of its total depository base of ₹38,619 crore.

While the small finance bank’s CASA deposit represented 24.3% of deposits, at ₹9,381 crore, the long-term goal is for CASA to hit 35% of total deposits by FY30, bolstered by the planned expansion of the branch network. The bank plans to expand its branch network to approximately 1,150 branches, from 752, to an expanded customer base.

Ujjivan plans to bring its cost-to-income ratio close to 55% by optimising the framework of its technology or digital stack, having the right-sized employee count, rationalizing operational expenses, enhancing productivity, and with the prudent rollout of its branches and other physical infrastructure, it stated.

Commenting on the strategy, Sanjeev Nautiyal, Managing Director & CEO of Ujjivan Small Finance Bank, said: “We expect annual Gross Loan Book growth in the range of 20%–25%, with the objective of achieving RoE of 16%–18% and RoA of 1.8%–2.0% in FY30. With a diversified and growing customer base of over 97 Lakhs across 26 states & Union Territories, we are well positioned to deliver on these priorities while continuing to focus on Mass, Aspiring, and Emerging Affluent segments of a growing India.”

Shares of the bank closed 3.71% higher at ₹44.15 apiece on Monday.

Ujjivan Small Finance Bank has a total market capitalisation of ₹8,531.21 crore, as of September 8, 2025, according to data on the NSE.