Q3 2026 Ujjivan Small Finance Bank Ltd Earnings Call Transcript
Key Points
- Ujjivan Small Finance Bank Ltd (BOM:542904) reported a strong quarter with deposits growing by 7.7% quarter-over-quarter (QOQ) and 22.4% year-over-year (YOY) to INR 42,223 crores.
- The bank's gross loan book grew by 7.1% QOQ and 21.6% YOY, driven by the highest ever quarterly disbursements at INR 8,293 crores.
- Asset quality showed improvement with the SMA book declining and GNPA remaining flat at 1.1%.
- Net interest margin increased to 8.2%, supported by a lower cost of funds and favorable product mix.
- Profit after tax came in at INR 186 crore with an ROA of 1.5% and ROE of 11.5%, indicating strong improvement in profitability.
- The bank's cost to income ratio remained high at 66%, although it was flat QOQ.
- The individual loan portfolio in West Bengal showed a higher par, indicating some regional stress.
- The rejection rate for new customers in the microfinance segment was high, although it has improved from previous levels.
- The affordable housing portfolio saw a decline in yield due to increased competitive intensity and a shift towards higher ticket sizes.
- The bank's ROA guidance for the fiscal year is 1.2% to 1.4%, which may be challenging to achieve given the current ROA of 0.84% for the nine months ended.
Ladies and gentlemen, good day and welcome to the Q3 FY26 Ujjivan Small Financial Bank analyst conference call hosted by JM Financial Institutional Securities Limited. (Operator Instruction) Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Ajit Kumar from JM Financial Institutional Securities. Thank you and over to you, sir.
Thank you. Good evening everyone. I welcome you all to Q3 FY26 earnings call of a Ujjivan Small Finance Bank. Today we have the senior management team of Ujjivan Small Finance bank Represented by Mr. Sanjeev MDA and CEO; Carol Furtado, Executive Director; Mr. Sadananda Balakrishna Kamath, CFO; Mr. Ashish Goel, Chief Credit Officer; Mr. Vibhas Chandra, Head-MicroBanking; Mr. Hitendra Jha, Head Retail Liability Staff and TPP; Mr. Umesh Arora, Emerging Business; Mr. Martin PS, Chief Operating Officer; Mr. Brajesh Cherian, Chief Risk Officer; Mr. Siddharth, Federal Investor Relations and Mr. Gaurav Shah, Lead Investor
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