Ujjivan Small Finance Bank Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Ujjivan Small Finance Bank Ltd filed with BSE on 14 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Ujjivan Small Finance Bank reported Q4 FY26 net profit of INR282 crores with ROA of 2.1% and ROE of 17.2%, while full-year FY26 net profit was INR693 crores with ROA of 1.4%. Deposits grew 21.4% year-on-year to INR45,668 crores and the gross loan book grew 26.6% year-on-year to INR40,655 crores, with the secured portfolio rising to 49.4% of the book. Management said the RBI returned the bank's application for a voluntary transition to a universal bank while acknowledging efforts toward loan portfolio diversification, and guided FY27 advances growth of around 25% with credit cost moderating to 1.4%-1.5% and ROA of around 1.6%.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Net profit: INR693 crores (FY26)
p. 6
“Net profit for financial year '26 came in at INR693 crores with ROA and ROE at 1.4% and 10.9%, respectively.”
Sanjeev Nautiyal, page 6 of the filed PDF · View the filing
Net profit: INR282 crores (Q4 FY26)
p. 6
“The exit quarter PAT stood at INR282 crores.”
Sanjeev Nautiyal, page 6 of the filed PDF · View the filing
Total deposits: INR45,668 crores (Q4 FY26)
p. 4
“Total deposits stood at INR45,668 crores, reflecting Y-o-Y growth of 21.4% and 8.2% Q-o-Q, while CASA deposits grew higher, leading to an improvement in the CASA ratio to 28.6%.”
Sanjeev Nautiyal, page 4 of the filed PDF · View the filing
Gross loan book: INR40,655 crores (Q4 FY26)
p. 5
“The gross loan book reached INR40,655 crores, growing 26.6% Y-o-Y and 9.7% Q-o-Q.”
Sanjeev Nautiyal, page 5 of the filed PDF · View the filing
Net interest margin: 8.5% (Q4 FY26)
p. 5
“Net interest margin for the quarter improved further to 8.5%.”
Sanjeev Nautiyal, page 5 of the filed PDF · View the filing
GNPA: 2.27% (Q4 FY26)
p. 5
“At a bank level, GNPA stood at 2.27% with sequential moderation in PAR, reflecting improving borrower behaviour and the effectiveness of our collection efforts.”
Sanjeev Nautiyal, page 5 of the filed PDF · View the filing
Credit cost: 2.2% of average gross loan book (FY26)
p. 5
“Overall, portfolio quality remained robust with credit cost improving to 2.2% of the average gross loan book for financial year '26, down by 20 basis points Y-o-Y, and a visible moderation in slippages during the period.”
Sanjeev Nautiyal, page 5 of the filed PDF · View the filing
Disbursements: INR9,811 crores (Q4 FY26)
p. 5
“Disbursements during Q4 FY26 were the highest ever at INR9,811 crores, up 32.1% Y-o-Y and 18.3% Q-o-Q, reflecting strong demand across segments.”
Sanjeev Nautiyal, page 5 of the filed PDF · View the filing
Secured portfolio: 49.4% of overall book (Q4 FY26)
p. 4
“The secured portfolio now contributes 49.4% of the overall book, up from 43.5% Y-o-Y and 48.1% Q-o-Q.”
Sanjeev Nautiyal, page 4 of the filed PDF · View the filing
MFI slippages: INR130 crores (Q4 FY26)
p. 13
“Slippages for MFI regards -- around for group loan individual and put together would be in the range of INR130 crores.”
Gaurav Sah, page 13 of the filed PDF · View the filing
PCR: 81% (Q4 FY26)
p. 5
“PCR improved to 81%, providing an adequate buffer.”
Sanjeev Nautiyal, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Advances growth — around 25% · FY27
stated firmly by Sanjeev Nautiyal
p. 6
“Grow the advances by around 25%, expect credit cost to moderate to 1.4% to 1.5% of the average GLB, and reach ROA of around 1.6%.”
Sanjeev Nautiyal, page 6 of the filed PDF · View the filing
Credit cost — 1.4% to 1.5% of average GLB · FY27
stated firmly by Sanjeev Nautiyal
p. 6
“expect credit cost to moderate to 1.4% to 1.5% of the average GLB, and reach ROA of around 1.6%.”
Sanjeev Nautiyal, page 6 of the filed PDF · View the filing
ROA — around 1.6% · FY27
stated firmly by Sanjeev Nautiyal
p. 18
“Hence, the base case ROA of 1.6%.”
Sanjeev Nautiyal, page 18 of the filed PDF · View the filing
Net interest margin — around 8.5% · FY27
stated firmly by Sanjeev Nautiyal
p. 18
“I would finally like to give the guidance of NIM around 8.5%.”
Sanjeev Nautiyal, page 18 of the filed PDF · View the filing
Opex to ATA — 20 to 30 basis points above FY26 · FY27
stated firmly by Sanjeev Nautiyal
p. 18
“The opex to ATA ratio would be 20 to 30 basis points above financial year '26 due to the investments that we are making for the future growth.”
Sanjeev Nautiyal, page 18 of the filed PDF · View the filing
Micro banking growth — higher single-digit, around 9-10% · FY27
stated firmly by Sanjeev Nautiyal
p. 7
“As far as the micro banking business is concerned, we would be growing it at less than 10%, I would say, a higher single-digit number, and correspondingly, the secured book would grow at a much faster pace.”
Sanjeev Nautiyal, page 7 of the filed PDF · View the filing
Secured portfolio mix — a little upwards of 56% · FY27
stated firmly by Sanjeev Nautiyal
p. 9
“For this year, I can only guide that our secured portfolio would be a little upwards of 56%.”
Sanjeev Nautiyal, page 9 of the filed PDF · View the filing
CASA ratio — around 29% to 30%
stated as an aspiration by Sanjeev Nautiyal
p. 11
“The CASA ratio would be around 29% to 30%.”
Sanjeev Nautiyal, page 11 of the filed PDF · View the filing
Cost of deposits — 30 basis points benefit
stated firmly by Sanjeev Nautiyal
p. 9
“Benefit of around 30 basis points.”
Sanjeev Nautiyal, page 9 of the filed PDF · View the filing
Equity capital raise — not exceeding INR2,000 crores · second half of the current financial year
stated conditionally by Sanjeev Nautiyal
p. 8
“Our plan is to do it in the second half of the current financial year, depending on the suitability of the circumstances.”
Sanjeev Nautiyal, page 8 of the filed PDF · View the filing
Secured lending growth — 40% · FY27
stated firmly by Ashish Goel
p. 15
“Yes, 40% is something that we have already planned. So 10% on unsecured, 40% on secured and therefore, 25% average.”
Ashish Goel, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the ROA decline to planned investments in tech, digital, AI and branch expansion, and to configuration changes as the secured book scales.
Answered by Sanjeev Nautiyal
Asked by Digant Haria: Why is ROA guided down to 1.6% from over 2%, is it due to opex from branch expansion?
p. 6
“we would be entailing investments on the lines that I indicated, which is on tech, digital, AI, and branch expansion. So all these expenses or investments would actually lead to an ROA, which I indicated.”
Sanjeev Nautiyal, page 6 of the filed PDF · View the filing
Micro banking growth would be a higher single digit while secured book grows faster; NIM guided to stay near the exit quarter level.
Answered by Sanjeev Nautiyal
Asked by Shreepal Doshi: What is the segmental growth aspiration and will margins compress given a shift toward secured assets?
p. 7
“So what we are saying is the NIM for this year would be at the same level of the exiting quarter, right, close to that number.”
Sanjeev Nautiyal, page 7 of the filed PDF · View the filing
Management pointed to investments in branches, IT projects, AI, low-cost channels and staff costs as the drivers.
Answered by Sanjeev Nautiyal
Asked by Sarvesh Gupta: What is driving the 50 bps ROA compression if cost-to-income and yields stay stable?
p. 8
“So the investments and new projects would be on branches, on efficiency enhancements, and the others, which are about marketing and new training programs, efficiency would be on IT projects, AI investments, low-cost channels, and branches about infrastructure and staff costs.”
Sanjeev Nautiyal, page 8 of the filed PDF · View the filing
Management cited a further 30 bps benefit from cost of funds, reduced NPA interest reversals, and higher-yielding new products like 2-wheeler, gold loan and micro mortgages supporting NIM.
Answered by Sanjeev Nautiyal
Asked by Abhishek M: How will the bank protect margins given the secured book's lower yields and rising mix, and is there room to cut TD rates further?
p. 10
“We also have the 2-wheeler and the proposed used car product that we are going to launch. The 2-wheeler has a substantive yield sitting on it. Then we also have the gold loan, which is upward of 14%, and micro mortgages, which are at 19.8%”
Sanjeev Nautiyal, page 10 of the filed PDF · View the filing
Management said the portfolio is domestic and retail with no direct exposure to affected sectors, but scenario frameworks have been refreshed and stress tests conducted.
Answered by Sanjeev Nautiyal
Asked by Kaushik Agarwal: Are there any early warning signs from the West Asia conflict affecting the customer segment?
p. 11
“our portfolio is overwhelmingly domestic, granular, and retail in nature. And we do not have any foreign currency lending exposure, no exposure to oil, gas, defense, or aviation.”
Sanjeev Nautiyal, page 11 of the filed PDF · View the filing
Management said there are no plans for inorganic acquisition and the 1.6% ROA guidance is maintained with possible upside.
Answered by Sanjeev Nautiyal
Asked by Jitark Shah: Could the INR2,000 crore capital raise fund any inorganic acquisition of secured book?
p. 12
“So, we have no plans at this point in time for any inorganic acquisition. And we are maintaining the 1.6% at this point in time.”
Sanjeev Nautiyal, page 12 of the filed PDF · View the filing
Management explained that much of the recent customer acquisition is not yet eligible for repeat loans, capping near-term growth, and they are cautious about pushing new-to-bank customer share too high.
Answered by Ashish Goel
Asked by Rajiv Mehta: Why is microfinance growth being restrained to 8-9% given the seasoned team and recovering demand?
p. 13
“Now most of the repeat loans that -- most of the customer acquisition that we have done would not be eligible for repeat loans.”
Ashish Goel, page 13 of the filed PDF · View the filing
Management said there is no such plan for additional provisioning in the next financial year.
Answered by Ashish Goel
Asked by Shailesh Kanani: Is the bank building a contingency provisioning buffer ahead of ECL implementation for reapplying for a universal license?
p. 14
“No, we don't have a plan to that effect, Shailesh for the next financial year.”
Ashish Goel, page 14 of the filed PDF · View the filing
Management said the guidance reflects conservatism on opex and credit cost and covers for eventualities in certain products.
Answered by Siddharth Bharadwaj
Asked by Darshil Jhaveri: If NIM, opex and credit cost are all expected to stay similar to Q4, why is ROA guided down from 2% to 1.6%?
p. 17
“What you are not catching right now is the fact that we are being conservative on both our opex and our credit cost. And our guidance is coming from that place.”
Siddharth Bharadwaj, page 17 of the filed PDF · View the filing
Management said they see no stress on the deposit side currently and expect deposits to grow as anticipated.
Answered by Hitendra Jha
Asked by Darshil Jhaveri: Are deposits facing pressure from intense competition as peers have indicated?
p. 18
“As of now, we don't see any stress on deposit side. It is growing as per our expectation.”
Hitendra Jha, page 18 of the filed PDF · View the filing
Risks flagged
Downside risks to GDP projection from geopolitical tensions such as the West Asia conflict, oil price volatility, supply chain disruptions and El Niño-driven inflation
p. 3
“The projection faces downside risks from geopolitical tensions, such as the West Asia conflict, oil price volatility, supply chain disruptions, and the super El Niño weather phenomenon, fuelling inflation.”
Sanjeev Nautiyal, page 3 of the filed PDF · View the filing
Potential second-order impacts from the Middle East crisis despite limited direct exposure
p. 11
“we have stress-tested our portfolio. Origination posture is calibrated geography-by-geography, and we have a heightened monitoring system in place, for example, for 2-wheelers, used vehicles, MSME working capital, and monitoring has been tightened”
Sanjeev Nautiyal, page 11 of the filed PDF · View the filing
RBI returned the universal banking license application pending further diversification of the loan portfolio
p. 4
“We received communication from the RBI on 13th April on our application for voluntary transition to a universal bank.”
Sanjeev Nautiyal, page 4 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.