Ujjivan Small Finance Bank Charts Roadmap to Achieve ₹1 Lakh Crore Gross Loan Book by FY2030
Aurangabad. Ujjivan Small Finance Bank (Ujjivan SFB) has unveiled its strategic roadmap to achieve a Gross Loan Book (GLB) of ₹1 lakh crore by FY2030, building on its progress since commencing operations as a Small Finance Bank in 2017. The plan focuses on expanding its liability franchise, deepening asset product reach, and creating cost-efficient operations to ensure sustainable profitability.
Diversified Loan Portfolio:
Ujjivan has steadily diversified its loan book. Secured lending, which stood at 16% in FY2019, has increased to 46% by Q1 FY2026. The bank aims to raise this to 65%-70% by expanding in affordable housing, micro-mortgages, MSME lending, vehicle finance, gold loans, and agri-finance. In addition, Ujjivan plans to introduce mid-corporate lending products. While the micro-banking portfolio, primarily group loans, remains its foundation, the bank also seeks to grow its individual lending base as customers progress economically.
Liability Franchise:
By Q1 FY2026, Ujjivan had built a granular liability franchise with deposits of ₹38,619 crore, of which 72% were retail deposits (CASA + retail term deposits). CASA balances stood at ₹9,381 crore, accounting for 24.3% of deposits. The long-term goal is to increase CASA share to 35% by FY2030. Growth will be supported by branch expansion (from 752 to ~1,150 branches), deeper cross-sell across its customer base, and new offerings such as IPO-ASBA, mutual fund distribution, remittances, and co-branded credit cards.
Profitability and Risk Profile:
The bank’s focus will be on optimizing its technology/digital stack, maintaining the right workforce size, rationalizing costs, enhancing productivity, and scaling physical infrastructure prudently. These measures are expected to bring the cost-to-income ratio close to 55%. Coupled with disciplined underwriting and collections, the bank targets a Return on Assets (ROA) of 1.8%-2.0% and a Return on Equity (ROE) of 16%-18% by FY2030.
Capital Position:
As of Q1 FY2026, Ujjivan remained well-capitalized with a CRAR of 22.8% and Tier 1 capital at 21.2%. The shift towards lower-risk secured loans enhances capital efficiency, enabling long-term growth without immediate capital infusion needs.
Commenting on the journey, Mr. Sanjiv Nautiyal, MD & CEO of Ujjivan Small Finance Bank, said:
“Our roadmap to achieving a ₹1 lakh crore Gross Loan Book by FY2030 builds on the strong foundation we have laid since becoming a Small Finance Bank. Over this period, our GLB has grown from ₹7,560 crore in FY2017 to ₹33,287 crore in Q1 FY2026.”
He added, “Our strategy focuses on expanding the branch network from 752 to ~1,150, increasing the secured portion of the loan book to 65%-70%, raising CASA to 35% of deposits, and doubling branch productivity. We expect annual GLB growth in the range of 20%-25%, targeting 16%-18% ROE and 1.8%-2.0% ROA by FY2030. With a growing customer base of over 9.7 million across 26 states and union territories, we are well-positioned to serve India’s aspiring and emerging affluent classes.”
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