Ujjivan Small Finance Bank (Ujjivan SFB) has outlined its strategic roadmap to achieve a Gross Loan Book (GLB) of Rs 1 lakh crore by FY30, building on the progress made since receiving its small finance bank licence in 2017. The bank said its growth will be anchored on the steady expansion of its liability franchise, the deepening of its asset product suite, and cost-optimised operations that will help deliver sustained profitability.

Ujjivan has been steadily diversifying its loan portfolio, with secured lending rising from 16 per cent in FY19 to 46 per cent as of Q1FY26. The bank now aims to increase the secured loan share to 65–70 per cent, driven by growth in affordable housing, micro mortgages, MSME lending, vehicle finance, gold loans, and agri loans, while also planning to add mid-corporate lending to its portfolio. The micro banking segment, which is primarily composed of group loans, continues to form the foundation of its scale, with many customers gradually transitioning to individual loans.

On the liabilities side, the bank has developed a strong and granular base, with retail deposits—comprising CASA and retail term deposits—accounting for 72 per cent of total deposits of Rs 38,619 crore as of Q1FY26. CASA balances stood at Rs 9,381 crore, representing 24.3 per cent of deposits. Ujjivan has set a long-term target of raising CASA to 35 per cent of deposits by FY30, supported by an expansion of its branch network from 752 to around 1,150 branches, deeper cross-selling, and a broader range of offerings such as IPO-ASBA, insurance, mutual fund distribution, remittances, and co-branded credit cards.

As the bank scales up, it will focus on optimising its technology and digital stack, maintaining the right-sized workforce, rationalising operational expenses, and enhancing productivity. Together with a prudent rollout of branches and physical infrastructure, these measures are expected to bring the cost-to-income ratio down to around 55 per cent. Combined with robust credit underwriting and collection mechanisms, the bank expects to deliver a return on assets (RoA) of 1.8–2.0 per cent and a return on equity (RoE) of 16–18 per cent by FY30.

Ujjivan also remains comfortably capitalised, with a CRAR of 22.8 per cent and Tier I capital at 21.2 per cent as of Q1FY26. The ongoing shift towards secured loans, which carry lower risk weights, is expected to further improve capital efficiency and provide headroom to support long-term growth without the immediate need for raising fresh capital.

Commenting on the bank’s journey, Sanjeev Nautiyal, Managing Director and CEO of Ujjivan Small Finance Bank, said, “Our roadmap to a Rs 1 lakh crore gross loan book by FY30 builds on the foundation established since becoming a small finance bank. Over this period, we have grown our gross loan book from Rs 7,560 crore in FY17 to Rs 33,287 crore in Q1FY26. Our strategy focuses on expanding the branch network from 752 to around 1,150, increasing the secured share of the loan book to 65–70 per cent, raising CASA to 35 per cent of deposits, and doubling branch productivity. We expect annual gross loan book growth in the range of 20–25 per cent, with the objective of achieving RoE of 16–18 per cent and RoA of 1.8–2.0 per cent in FY30. With a diversified and growing customer base of more than 97 lakh across 26 states and Union Territories, we are well positioned to deliver on these priorities while continuing to focus on the mass, aspiring and emerging affluent segments of a growing India.”