Ujjivan Small Finance Bank (SFB) is planning to raise approximately ₹2,000 crore over the next 18-24 months through a Qualified Institutional Placement (QIP) to support its long-term growth strategy. The bank has submitted an application for a universal banking license to the Reserve Bank of India (RBI) and is awaiting a decision, which is expected by December. Despite the uncertainty surrounding the license, Ujjivan SFB has set several growth priorities for FY30, including tripling its liabilities, achieving a CASA ratio of around 35%, and expanding its gross loan book to approximately ₹1 lakh crore.
The bank also plans to add about 500 new branches, maintain a cost-to-income ratio of about 55%, and keep operating expenses below 5% of average assets. For the nearer term, Ujjivan SFB has guided for FY26 with projected asset growth of 20%, a CASA deposit ratio of 27%, a return on assets (ROA) of 1.2-1.4%, and a return on equity (ROE) between 10-12%. The cost-to-income ratio is expected to be around 67%.
According to Sanjeev Nautiyal, MD & CEO of Ujjivan SFB, the bank’s five-year growth plan is designed to be agnostic to whether the RBI grants the universal banking license, ensuring that Ujjivan SFB’s strategic priorities remain on track regardless of regulatory outcomes. This means that the bank is prepared to move forward with its growth plans, with or without the universal banking license.
The proposed QIP of ₹2,000 crore will help Ujjivan SFB to support its long-term growth strategy, which includes expanding its branch network, increasing its loan book, and improving its deposit base. The bank’s management is hopeful that the RBI will grant the universal banking license, which would enable Ujjivan SFB to offer a wider range of banking services to its customers. However, even if the license is not granted, the bank is confident that it can still achieve its growth objectives. Overall, Ujjivan SFB is well-positioned to achieve its long-term growth strategy, with a clear plan in place and a strong management team to execute it.