Ujjivan Small Finance Bank Share Price Dips 4.83%; Posts 9.8% YoY Loan Growth in Q3 FY25

Ujjivan Small Finance Bank Ltd announced its financial results for the quarter ending December 31, 2024.

Post the announcement, on January 24, 2025, Ujjivan Small Finance Bank share price (NSE: UJJIVANSFB) opened at ₹33.14, down from its previous close of ₹34.56. At 10:56 AM, the share price of Ujjivan Small Finance Bank was trading at ₹32.89, down by 4.83% on the NSE.

Q3 FY 2025 Highlights 

The bank’s gross loan book stood at ₹30,466 crore, showing a 9.8% year-on-year (YoY) growth and a 0.4% quarter-on-quarter (QoQ) increase. The secured loan book reached 39.3% of the total book by December 2024, compared to 28.3% in December 2023 and 34.9% in September 2024. This growth in the secured book was marked by a 13.3% QoQ and a 52.0% YoY increase.

In terms of deposits, the bank’s total stood at ₹34,494 crore, up 16.3% YoY and 1.2% QoQ. The Current Account Savings Account (CASA) balance rose by 15% YoY to ₹8,662 crore, with a CASA ratio of 25.1%.

Financially, Ujjivan Small Finance Bank reported a Net Interest Income (NII) of ₹887 crore, up 3.1% YoY, while its Net Interest Margin (NIM) stood at 8.6%. The bank also improved its operating expense to average assets ratio to 6.2%, compared to 6.4% in the previous quarter. Additionally, the capital adequacy ratio remained at 23.9%.

Management Commentary

Commenting on the performance, the MD & CEO of Ujjivan Small Finance Bank, Mr Sanjeev Nautiyal, said, “Q3FY25 has been a healthy quarter wherein the diversification of loan book is showing consistent improvement. Our strategy towards a more secured book has seen accelerated results contributing 39% to the total asset loan growing 13% QoQ and 52% YoY. These efforts enabled the loan book to grow to ₹ 30,466 crore, up 0.4% QoQ and 10% YoY.”

He further added, “Being a responsible lender, Bank undertook a proactive decision to effect a reduction in interest rates in Group loans (GL) and Individual loans (IL) offering competitive rates to our customers w.e.f. January 01, 2025. This will act as an enabler to acquire quality customers. Parallelly, we are keeping a close watch on the evolving Microfinance space and navigating it appropriately. Few pockets of stress visible earlier are now demonstrating healthy trends. X-Bucket collection efficiency in GL & IL has improved to 99.3% in Dec’24 vs 99.0% in Aug’24. Owing to the visible green shoots, we have seen higher disbursements during the first 3 weeks of Q4FY25. We are geared to pursue healthy business as the situation in different states approaches towards normalcy. Secured businesses are making perpetual and determined strides, this year registering a ~40% YTD growth and poised to register stronger growth for full-year FY25.”

“The bank is in the process of enabling some structural changes in its liability strategy enhancing focus to serve more targeted segments of affluent customers largely classified under Non-Residents, Corporate Salary and Traders. New products in our product suite affiliated post receipt of the AD-1 licence will also enhance offerings and improve the customer base in line with our above-stated strategy. Finally, I am happy to share that we will be shortly moving the application to RBI for transition to a Universal Bank having received approval of the Board in the meeting held today,” said Mr Sanjeev Nautiyal.

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