Ujjivan Small Finance Bank, one of India’s leading small finance banks, released its Q1 FY26 results on Thursday, 24th July 2025. The quarter proved challenging for the lender as it reported a steep decline in profitability, rising provisions, and deterioration in asset quality.
For Q1 FY26, the bank posted a profit after tax (PAT) of ₹103 crore, down 66% year-on-year compared to ₹301 crore in the same quarter last year. The sharp fall in profits was primarily due to increased provisions and a dip in net interest income (NII).
Key Financial Results for Ujjivan Small Finance Bank Q1 FY26
| Key Metrics | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Growth (%) | QoQ Growth (%) |
| Total Income (₹ Cr) | 1,867.8 | 1,843.0 | 1,774.3 | 5.3 | 1.3 |
| Net Profit (₹ Cr) | 103.2 | 83.4 | 301.0 | -66.0 | 23.8 |
| Provisions (₹ Cr) | 224.9 | 264.5 | 109.9 | 104.7 | -15.0 |
Important Updates from Ujjivan Small Finance Bank Latest Financial Results
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Profitability Decline
The bank’s net profit dropped sharply by 66% YoY to ₹103 crore in Q1 FY26, compared to ₹301 crore in Q1 FY25. This decline was driven by higher provisions and a 9% YoY fall in net interest income (NII) to ₹856 crore from ₹941 crore.
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Deterioration in Asset Quality
Gross Non-Performing Assets (GNPA) rose to 2.52% in Q1 FY26, an increase of 34 basis points over the previous quarter’s 2.18%.
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Surge in Provisions
Provisions for the quarter spiked to ₹224.94 crore, more than doubling compared to ₹109.85 crore in the same period last year.
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Growth in Advances and Deposits
Despite profitability concerns, Ujjivan SFB showed resilience in business growth:
- Gross Loan Portfolio (GLP) rose 11% YoY to ₹33,287 crore.
- Disbursements stood at ₹6,539 crore, up 24% YoY.
- Total deposits grew 19% YoY to ₹38,619 crore.
- CASA deposits increased by 13% YoY to ₹9,381 crore.
Management Commentary
Sanjeev Nautiyal, MD & CEO of Ujjivan SFB, highlighted that the bank’s secured segment grew 63% YoY, providing a strong base for future growth. He added that the cost of funds remained stable at 7.6%, and rates were selectively adjusted to improve margins in the coming quarters.
Looking Forward
While Q1 FY26 was challenging, Ujjivan Small Finance Bank continues to expand its loan book and deposit base. The focus remains on diversifying the portfolio, enhancing collection efficiency, and optimising funding costs. The management remains optimistic about achieving consistent growth in the upcoming quarters.
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