Ujjivan SFB Q2 results, announced on October 16, 2026, brought a record. Ujjivan Small Finance Bank earned a net profit of ₹365 crore for the September quarter, roughly three times the ₹122 crore it made a year earlier. Lower credit costs did the heavy lifting, along with and a 35% rise in net interest income. The board also approved a ₹409 crore preferential share issue led by the International Finance Corporation (IFC). For the broader picture, see our stock market today India hub.
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Ujjivan SFB Q2 results at a glance
These figures are for the quarter ended September 30, 2026 (Q2 FY27), from the bank’s investor presentation filed with NSE. Growth rates compare with Q2 FY26 unless we say otherwise.
- Net profit: ₹365 crore, up 200% from ₹122 crore, and up 15% from ₹317 crore in the June quarter.
- Net interest income (NII): ₹1,244 crore, up 35% from ₹922 crore. NII is interest earned minus interest paid.
- Net interest margin: 8.4%, up 55 basis points from 7.9%.
- Pre-provision operating profit: ₹594 crore, up 50% from ₹395 crore.
- Credit cost: ₹103 crore, down 56% from ₹235 crore, and below ₹127 crore in the June quarter.
- First half: net profit for April to September was ₹682 crore against ₹225 crore a year earlier.
Return on assets came in at 2.4% and return on equity at 19.7% for the quarter. The bank told CNBC-TV18 it is on track to hit the upper end of its return on assets guidance of 2%.
Book growth and cleaner loans
The gross loan book grew 32.1% to ₹45,699 crore from ₹34,588 crore, and secured loans now make up about 52% of it. Disbursements touched a quarterly high of ₹10,495 crore. Deposits crossed ₹50,000 crore for the first time, up 29.2% to ₹50,643 crore from ₹39,211 crore, with a current and savings account (CASA) ratio of 26.0% and a cost of funds of 6.9%. The branch count is 880, after more than 100 were added in the first half.
Asset quality got better too. Gross non-performing assets fell to 2.10% of loans from 2.45% a year ago, and net NPA was 0.31%, down 36 basis points year on year. The capital adequacy ratio rose 33 basis points in the quarter to 20.69%.
₹409 crore from IFC and insurers; a CEO search
The board approved raising ₹409.04 crore by issuing shares at ₹64.73 each, subject to shareholder approval. The Economic Times reported that IFC is likely to put in about ₹249 crore, with Bajaj Life Insurance, Aditya Birla Sun Life Insurance and HDFC Life Insurance making up the rest. As per CNBC-TV18, IFC’s stake would go from 3.18% to 4.99% after allotment. The bank estimates the raise would add about 1.2 percentage points to capital adequacy if risk-weighted assets stayed at September levels. On leadership, Sanjeev Nautiyal retired early on health grounds and left the board on September 1, 2026. CNBC-TV18 named Carol Furtado as whole-time director and interim CEO, and the presentation says the board’s nomination and remuneration committee is working on a managing director candidate to put before the regulator.
The results landed during Friday’s session and the stock slipped. On the NSE it closed at ₹63.25, down ₹1.25 or 1.94% from ₹64.50, after a range of ₹62.54 to ₹66.32, according to the NSE bhavcopy for October 16.
Our take
This quarter shows what falling credit costs can do for a lender. Provisions were cut by more than half from a year ago while operating profit rose 50%, and secured loans now form a bigger slice of the book. The IFC and insurer money gives room to keep growing loans. The top job, though, is still open. We previewed the bank in our bank stocks to watch on October 16 post, and our guide on how to analyse quarterly results of a company explains how to read these numbers.
This article is a news summary for information only and is not investment advice. Please consult a SEBI-registered adviser before making investment decisions.
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