Ujjivan Small Finance Bank Q2 Loan Book Grows 32% to Rs 45,699 Crore

Gross Loan Book: Rs 45,699 crore; Total Deposits: Rs 50,649 crore.
Reader Takeaway: Strong double-digit asset and deposit growth paired with a strategic shift toward lower-risk secured lending products.

What just happened

Ujjivan Small Finance Bank has released its provisional business performance data for the quarter ending September 30, 2026. The bank recorded a 32.1% year-on-year growth in its gross loan book, reaching Rs 45,699 crore, supported by a 33.1% surge in quarterly disbursements. Total deposits grew to Rs 50,649 crore, marking a 29.2% increase from the previous year.

Why this matters

The bank is successfully rebalancing its risk profile. The share of secured loans within the total loan book has climbed to 52%, up from 46.8% in Q2 FY26. Specific growth drivers were notable, particularly in the Gold Loan segment, which grew 209.7% YoY, and Agri Banking, which rose 79.1% YoY.

Asset Quality

Asset quality continues to show resilience. The Gross Non-Performing Assets (GNPA) ratio improved to 2.10%, down from 2.45% in the same period last year. Additionally, the bank reported significantly lower write-offs of Rs 43 crore compared to Rs 213 crore in the year-ago quarter, signaling better credit discipline and recovery performance.

Risks to watch

While top-line growth is robust, the CASA ratio has seen a slight moderation to 26.0%, down from 26.9% in the preceding quarter. Sustaining low-cost deposit growth remains a critical challenge for banking margins. Furthermore, these figures are provisional and subject to final audit reviews.

What to track next

Investors should monitor the continued diversification of the loan book and the impact of the rising secured lending share on the bank's net interest margins (NIMs) in upcoming quarters.