Target: ₹62CMP: ₹61.34 Initially started as an NBFC-MFI in 2005, Ujjivan Small Finance Bank received an in-principle approval from the RBI to set up a small finance bank in 2015. Its loan book has been historically dominated by microbanking (group loans), but it has been diversifying into secured assets like affordable housing loans, MSME financing and vehicle finance to reduce unsecured exposure.The gross loan book growth has revived to 20 per cent+ levels after moderating in FY25 due to over-leverage in the microfinance segment, resulting in elevated delinquencies. During Q4-FY26, the gross loan book grew 27 per cent year on year, aided by a sustained revival in the MFI segment (group and individual loans) and strong growth in the secured loan book. Group and individual loan disbursements grew about 39 per cent and 16 per cent, respectively, indicating a revival in the MFI segment. Asset quality has stabilised with stress in the micro-banking space receding across the country. SMA book (as of Q4FY26) has declined to 1.3 per cent, led by a decrease in forward flows into slippages. GNPA improved to 2.3 per cent in Q4FY26. PAR (Portfolio at Risk) has witnessed marked improvement to about 3.5 per cent. Ujjivan has reported the best asset quality performance among MFI peers during the last industry downcycle, driven by consciously moderating loan disbursements and an efficient collection framework. The management anticipates credit cost to further taper down in FY27.Published on July 2, 2026