Ujjivan Small Finance Bank is moving ahead with strong confidence as it prepares for the next phase of its growth journey.
The bank recently announced plans to raise ₹2,000 crore through a Qualified Institutional Placement (QIP) over the next 18–24 months. This fresh capital will fuel its roadmap to expand the branch network from around 752 to 1,150 outlets and nearly triple its loan book to ₹1-lakh crore by FY30.
Alongside expansion, Ujjivan Small Finance Bank is focusing on strengthening its portfolio by increasing the share of secured lending from under 46 percent to around 65–70 percent. This strategic shift is expected to improve asset quality, enhance resilience, and support consistent profitability.
Brokerage experts remain optimistic about the bank’s outlook, highlighting its balanced growth strategy, improved lending mix, and potential for stronger financial returns. Projections suggest a Return on Assets of 1.8–2 percent and a Return on Equity of 16–18 percent by FY30.
On the regulatory front, the bank is awaiting the Reserve Bank of India’s decision on its application for a universal banking licence. A decision is expected by December, which, if granted, will mark a major milestone in the bank’s journey.
Investor confidence has already reflected positively in the stock market, with shares of Ujjivan Small Finance Bank showing sharp gains following the announcements.
In short, the bank is stepping into a future powered by capital strength, strategic expansion, and the potential to become a universal bank, strengthening its promise to customers and investors alike.
Risk Disclaimer
This article is intended for general informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research or consult a financial advisor before making investment decisions.
