Ujjivan Small Finance Bank Limited Q2 2027 Earnings Recap

The stock was down 2.0% after earnings, a roughly flat reaction. Loan and deposit growth were substantial, but rising funding costs could pressure margins: management said the cost of funds is expected to move upward as earlier rate increases take effect.

Key Takeaways

• Gross loan book reached INR 45,699 crore, up 32.1% year-on-year and 12.4% year to date; management said it remains on track to meet full-year guidance.
• Deposits rose 29.2% year-on-year to INR 50,643 crore, with CASA at 26%. Cost of funds was around 6.9%, but management expects it to increase.
• Secured businesses now make up 52.1% of the loan book. Micro banking grew about 6% in H1, with full-year growth guided at around 12%–14%; Bucket X collection efficiency was 99.7%.
• Affordable housing and micro mortgages together exceeded INR 12,000 crore, up 38.1% year-on-year. Affordable housing GNPA was 1.2%, while micro-mortgage GNPA was 0.7%.
• The bank proposed a INR 409 crore preferential equity raise, subject to shareholder approval. Management said it would add approximately 1.2 percentage points to CRAR on a pro forma basis and INR 0.8 per share to book value.