Ujjivan Small Finance Bank (SFB) reported a more than three-fold jump in net profit for the fourth quarter at ₹282 crore, driven by strong growth in interest income on the back of record disbursements, lower provisions and higher other income. The Bengaluru-based lender had posted a net profit of ₹83 crore in the year-ago period.

Interest income rose 19% year-on-year to ₹1,878 crore during Q4FY26. Total expenditure, excluding provisions, increased to ₹1,670 crore from ₹1,483 crore in the corresponding quarter last year.

The bank reported its highest-ever quarterly disbursements at ₹9,811 crore in the fourth quarter, up 32.1% year-on-year. Group loan disbursements, including microfinance and non-microfinance segments, grew 39% to ₹3,870 crore. Financial Institutions Group (FIG) disbursements rose 47% to ₹1,565 crore, while individual loans increased 16% to ₹1,376 crore during the quarter.

“The newer business lines of gold, vehicle and agri loans scaled up and now contribute around 6% of our loan mix, against 3% as of March 2025,” said Sanjeev Nautiyal, MD & CEO, Ujjivan Small Finance Bank.

As of Q4FY26, the bank’s gross loan book stood at ₹40,655 crore. Group loans continued to account for the largest share at 36%, though lower than 41% a year ago. Affordable housing remained the second-largest portfolio with ₹8,900 crore outstanding, registering 22% year-on-year growth. The secured portfolio grew 43.5% year-on-year to ₹20,079 crore and accounted for 49.4% of the loan book as of March 2026, compared with 43.5% a year earlier.

Last month, the Reserve Bank of India returned Ujjivan SFB’s application for voluntary transition into a universal bank, citing concerns over the pace of portfolio diversification. The central bank advised the lender to reapply after demonstrating a more diversified loan mix.

Nautiyal said the bank would re-submit the application after achieving a well-diversified portfolio. “We remain committed to our universal banking aspirations. We have further augmented our board and management in FY26,” he said.

Total deposits grew 21.4% year-on-year to ₹45,668 crore, with low-cost current account and savings account (CASA) deposits accounting for 28.6%. On the asset quality front, the gross non-performing assets (GNPA) ratio inched up to 2.26% from 2.18% a year ago. However, net NPAs declined to 0.43% from 0.49% at the end of the fourth quarter of the previous fiscal.

For the full financial year 2025-26, Ujjivan Small Finance Bank’s net profit declined 5% to ₹693 crore from ₹726 crore in FY25. Total income, however, rose to ₹8,039 crore from ₹7,201 crore in the previous fiscal.

The lender’s board has also approved an equity capital raise of up to ₹2,000 crore to support future growth.