Ujjivan Small Finance Bank delivered exceptional Q2 FY27 results, with net profit surging 200% year-on-year to ₹365 crore from ₹122 crore, significantly beating analyst consensus estimates. The bank's net interest income climbed 35% to ₹1,244 crore from ₹922 crore YoY, while net interest margin expanded to 8.4%, up 55 basis points year-on-year. Operating profit surged 50.4% to ₹594 crore versus ₹395 crore in the corresponding quarter last year. Gross Non-Performing Assets moderated to 2.10% from 2.16% in the preceding quarter, while Net NPA came down to 0.31% from 0.34% QoQ. Provisions declined both year-on-year and sequentially to ₹103 crore, compared to ₹235 crore in Q1 and ₹127 crore in the year-ago period, indicating improved asset quality management.
Ujjivan Small Finance Bank's board has approved raising ₹409.04 crore through a preferential issue of shares at their meeting on Friday, October 16, 2026. According to the latest filing, the bank will issue 6.32 crore shares at an issue price of ₹64.73 per share, with each share carrying a face value of ₹10. The preferential issue is subject to shareholder approval at an Extraordinary General Meeting scheduled for November 13, 2026, with the relevant pricing date set as October 14, 2026. The equity issuance provides a benchmark valuation for primary institutional capital entry and reinforces capital buffers for loan book growth.
The International Finance Corporation will receive 3.84 crore shares, representing a total investment of ₹249.04 crore and increasing IFC's stake from 3.18% to 4.99% of the enlarged capital. As reported in the latest filing, IFC currently holds 6.21 crore shares representing 3.18% as of October 15, 2026, and will receive up to 3.84 crore new shares post-allotment. The bank has also approved a policy agreement with IFC that will remain operative for as long as IFC holds shares, covering environmental and social covenants, anti-corruption standards, anti-harassment policies, child protection provisions, and UN Security Council Resolution compliance. The combination of marquee primary equity backing and robust Q2 operating performance significantly strengthens Ujjivan Small Finance Bank's capital adequacy and growth runway.
Three major insurance companies will participate in the preferential issue alongside IFC. According to the latest filing, Bajaj Life Insurance will receive 92.69 crore shares worth ₹60 crore, while Aditya Birla Sun Life Insurance Company and HDFC Life Insurance Company Ltd. will each receive 77.24 lakh shares, taking their respective fund infusions to ₹50 crore each. These insurance companies are classified as qualified institutional buyers under SEBI ICDR Regulations and will join IFC as significant stakeholders in the small finance bank. The institutional backing from marquee investors reinforces investor confidence ahead of the November 13 EGM and provides a strong foundation for the bank's future growth initiatives.
Ujjivan Small Finance Bank demonstrated strong business growth with deposits increasing 29.2% year-on-year and 5.2% quarter-on-quarter to ₹50,643 crore. CASA deposits rose 22.2% year-on-year to ₹13,176 crore, maintaining a CASA ratio of 26%. The bank's gross loan book grew 32.1% year-on-year and 6.5% quarter-on-quarter to ₹45,699 crore, with quarterly disbursements increasing 32.3% year-on-year to ₹10,495 crore. The secured book stood at ₹23,803 crore with a secured book share of 52.1%, while the affordable housing book rose 31.4% year-on-year to ₹10,056 crore. The bank also launched the ASBA facility for customers during the quarter, enhancing its digital banking capabilities.
