Ujjivan Small Finance Bank Sets Bold Growth Plans with Major Capital Infusion

Ujjivan Small Finance Bank (SFB) has announced ambitious plans to raise Rs 2,000 crore in core capital within the next two years to bolster its growth trajectory, a key official revealed on Monday.

The bank, transitioning from a microlender to a small finance bank, seeks to expand its branch network from 752 to 1,150 and aims for nearly threefold growth in its loan book over the next five years.

Managing Director and CEO Sanjeev Nautiyal expressed optimism about a normalization of stress in microfinance loans, indicating bright prospects for growth and an increase in disbursements soon.

Ujjivan plans to maintain a capital adequacy ratio between 17-20% over the next five years, targeting a substantial increase in its loan book to Rs 1 lakh crore by FY30, up from Rs 32,122 crore in FY25.

To diversify its revenue streams, the bank plans to increase the share of low-cost deposits and explore new financial services such as issuing bank guarantees, forex services, and co-branded cards, without a specified timeline for implementation.

(With inputs from agencies.)