Ujjivan SFB Q1 FY27: Deposits +25%, Loans +29%

What the Q1 FY27 business update signals

Ujjivan Small Finance Bank (Ujjivan SFB) reported a strong provisional business update for the quarter ended June 30, 2026 (Q1 FY27), pointing to sustained momentum in both deposits and advances. Total deposits rose 25.1% year-on-year to ₹48,307 crore, while the gross loan book expanded 28.9% year-on-year to ₹42,903 crore. The update also indicated a sharp rise in disbursements and a sequential improvement in asset quality.

The provisional disclosure is focused on operating metrics such as deposits, advances, disbursements, and asset quality. The bank has not yet released the full unaudited quarterly financial results with profit and loss details. Investors are tracking these early indicators because they often shape expectations ahead of the scheduled results.

Board meeting on July 23, 2026: what is on the agenda

Ujjivan SFB has scheduled a board meeting on July 23, 2026 to consider the financial performance for the first quarter of FY27. The same date is also listed as the upcoming earnings date in the provided details. The business update serves as a snapshot ahead of that board review.

For context, the bank had reported March-quarter profitability with net profit of ₹281.97 crore for the quarter ended March, supported by higher core income and improving asset quality. Net interest income (NII) for that quarter stood at ₹1,092.89 crore, and the “previous quarter” figures provided also cite revenue of ₹2,186 crore and PAT of ₹282 crore.

Deposits: growth stays strong, mix improves

Total deposits climbed to ₹48,307 crore in Q1 FY27, compared with ₹38,619 crore in Q1 FY26. Sequentially, deposits increased 5.8% from ₹45,668 crore in Q4 FY26. The data indicates that deposit mobilisation has kept pace with the bank’s credit expansion, supporting balance sheet growth.

Within the mix, CASA deposits rose 37.8% year-on-year to ₹12,930 crore from ₹9,381 crore. The CASA ratio improved to 26.8% from 24.3% a year ago, although it was lower than 28.6% reported in the previous quarter. The bank’s update also flagged a “seasonal dip in deposit stickiness,” while still showing a year-on-year improvement in the mix.

Advances: loan book grows faster than guidance

The gross loan book reached ₹42,903 crore in Q1 FY27, up from ₹33,287 crore in Q1 FY26. On a quarter-on-quarter basis, the loan book rose 5.5% from ₹40,655 crore in Q4 FY26. The bank’s disclosed growth of 28.9% year-on-year is ahead of its FY27 guidance for advances growth of 25%.

The data also noted that Q1 loan growth outpaced the system’s credit growth, though no system-level number was provided in the text. What is clear from the disclosure is that Ujjivan’s balance sheet expansion remained broad-based, with secured and unsecured segments contributing to the overall increase.

Secured book crosses half of total advances

A key shift in the bank’s operating strategy continues to be a higher secured portfolio share. The secured loan book stood at ₹21,555 crore, reflecting 42.2% year-on-year growth. Secured loans formed 50.2% of the total loan book in Q1 FY27, up from 45.5% in the previous year.

The bank’s longer-term target referenced in the update is a secured portfolio mix of 56% by March 2027. The current level shows progress toward that objective, with secured lending now accounting for more than half the book.

Disbursements: strong year-on-year pickup, softer sequentially

Quarterly disbursements rose to ₹9,252 crore, up 41.5% year-on-year from ₹6,539 crore. Sequentially, disbursements were down 5.7% from ₹9,811 crore in Q4 FY26, which the update described as a high-base quarter.

This pattern is consistent with strong annual momentum while showing normalised activity levels versus the immediately preceding quarter. The disbursement trend is an important operating indicator because it often links directly to future loan book expansion and interest income trajectory.

Asset quality: GNPA improves; write-offs disclosed

The provisional data showed continued improvement in asset quality. Gross NPA (GNPA) was reported at 2.17% in Q1 FY27, improving from 2.52% a year ago. The update also cited GNPA at 2.27% in Q4 FY26, indicating sequential improvement as well.

Other asset quality and credit cost indicators in the text include a Provisioning Coverage Ratio (PAR) of 3.58%, down from 4.81% in the corresponding quarter of the previous year. Write-offs for the quarter were ₹68 crore. For collections, Micro Banking collection efficiency for Bucket X was 99.68% in Q1 FY27.

Liquidity and deployment: credit-deposit ratio at 88.8%

The credit-deposit ratio stood at 88.8% in Q1 FY27, compared with 86.2% in the corresponding period last year and 89.0% in the previous quarter. This suggests the bank continued to deploy deposits into credit at a high utilisation level, while staying broadly stable versus the March quarter.

The disclosed targets also include a CASA ratio goal of 29-30%. With the Q1 FY27 ratio at 26.8%, the mix has improved year-on-year but remains below the stated target band.

Stock and market snapshot: price points and key reference data

Market data in the provided text shows multiple reference points around the same period. One snapshot lists CMP at ₹64.88 with market capitalisation of ₹12,624.54 crore. Another market mention said the stock traded down 2.25% to ₹60.02 in a session following the business update, while a separate note said the share price was around ₹61.02 and up over 14% so far this year.

These price moves underscore that a strong operating update does not always translate into immediate stock gains, especially when broader market positioning and expectations are already priced in.

Key numbers table: Q1 FY27 operating metrics at a glance

Why this update matters heading into results

The Q1 FY27 business update indicates that Ujjivan SFB is growing both sides of the balance sheet at a strong pace, with advances growth exceeding the bank’s stated 25% guidance. The increase in CASA deposits and year-on-year improvement in the CASA ratio are supportive for funding costs, even though the ratio eased sequentially.

The rise in secured share to 50.2% is another metric investors often track, especially given the bank’s stated goal of reaching 56% by March 2027. Alongside this, the decline in GNPA to 2.17% compared with 2.52% a year earlier suggests that growth is not coming at the expense of asset quality, based on the provisional numbers disclosed.

Conclusion: focus shifts to July 23 board meeting outcome

Ujjivan SFB’s provisional Q1 FY27 metrics show 25.1% deposit growth to ₹48,307 crore, 28.9% loan book growth to ₹42,903 crore, and 41.5% growth in disbursements to ₹9,252 crore, with GNPA improving to 2.17%. The board meeting scheduled for July 23, 2026 is the next key event, as it is expected to consider the quarter’s financial results beyond the operating data already shared.