### **Overview** Ujjivan Small Finance Bank Limited (Ujjivan SFB), established as a wholly-owned subsidiary of Ujjivan Financial Services Limited (UFSL), transitioned from a microfinance institution (MFI) to a regulated Small Finance Bank (SFB) in February 2017. With a vision to become the primary bank for India’s aspirational middle class, Ujjivan SFB has evolved into a **technology-driven, customer-centric mass-market bank**, delivering inclusive financial services across urban, semi-urban, and rural India. As of September 2025, the bank operates with a **dual focus on digital innovation and physical accessibility**, serving over **9.5 million customers** through a vast pan-India network. --- ### **Financial and Operational Highlights (as of Sep 2025 unless specified)** | Metric | Status | |-------|--------| | **Branch Network** | 753 touchpoints across 26 states and UTs, 326 districts | | **Total Customer Base** | >95.1 lakh | | **Balance Sheet Size** | ~₹20,000 crore (doubled since inception) | | **Total Deposits** | ₹38,619 crore (Retail deposits: 72% of total) | | **CASA Ratio** | 24.3% (Target: 35% by FY30) | | **Digital Transactions** | >10 crore/month | | **Field Staff ("Chalta Phirta Bank")** | ~16,000 personnel enabling last-mile delivery | | **Return on Assets (RoA)** | On track for 1.8–2.0% by FY30 | | **Return on Equity (RoE)** | Targeting 16–18% by FY30 (long-term goal over 22%) | Ujjivan has achieved industry-leading **asset quality**, with GNPA historically peaking at 7% in FY20–21 but now demonstrating sustained stabilization and improvement. --- ### **Core Business Segments and Strategic Growth Drivers** #### **1. MicroBanking – Foundation and Evolution** - **Core Segment**: Serves over 9 million financially underserved customers, primarily low-income households. - **Transition Strategy**: Shifting from group-based lending to **individualized, secured loans**, with a focus on sustainability and profitability. - **Performance (Q1 FY26)**: Ujjivan outperformed the industry, reporting **0.1% portfolio growth** in MicroBanking vs. a **sector-wide decline of 5.8%**. - **Asset Quality**: Superior to peers – **PAR (1–30 DPD): 0.7%**, **PAR (31–180 DPD): 3.2%** (Industry: 1.5% and 5.5% respectively). - **Digitalization**: Implemented end-to-end digital onboarding (GLOW LOS), AI-enabled credit decisioning, and automated collections. #### **2. Agricultural & Allied Financing** - **Target Customers**: Farmers engaged in crop cultivation, dairy, poultry, fisheries, and livelihood-linked activities. - **Product Suite**: - **Kisan Pragati Card (KPC)**: Overdrafts for working capital. - Term loans for farm infrastructure, machinery, and livestock. - **Distribution**: Operates through **291 rural branches across 10 states**, backed by door-to-door ("Chalta Phirta") sales teams. - **Portfolio Growth**: - **Agri Loan Book**: ₹403 crore (Sep 2025), up **4x since Q1 FY25**. - Disbursement Run Rate: ₹35.9 crore/month. - **Portfolio Quality**: - **GNPA: 0.7%**, among the lowest in the industry. - Yields: ~13%. - **Future Plans**: - Expansion into **farm infrastructure loans** (irrigation, cold storage). - Launch of **dairy-focused enterprise loans**. - Targeting **>300 locations and 200,000+ potential customers** as untapped market. #### **3. Gold Loan – High-Yield, Secured Asset Class** - **Target Segments**: Salaried individuals, housewives, micro-entrepreneurs, and farmers with gold assets but limited formal income proof. - **Key Features**: - Quick disbursal (<24 hours), minimal documentation. - Flexible repayment and high operational efficiency. - **System-driven via FinPower LOS** ensuring transparency and fast turnaround. - **Growth Momentum (Q1 FY26)**: - **Disbursements**: ₹164 crore (+7x YoY). - **Loan Book**: ₹293 crore (+10x YoY). - **Customer Base**: 16,400 gold loan customers. - **Innovation**: - Launch of **Gold Loan Elite**, a premium product for affluent customers with high tenure. - Geographically expanding into **North and East India** to gain first-mover advantage. - **Credit Quality**: Near-zero NPAs reported in Q1 FY26. #### **4. Vehicle Financing – Mobility & Livelihood Enabler** - **Product Offering**: - Two-wheeler loans (up to ₹5 lakh, financing up to 95% of on-road value, tenure up to 60 months). - Expanding into **mid-premium two-wheelers, e-2Ws, e-3Ws, and used cars by FY26**. - **Target Market**: Salaried and self-employed clients in **Tier-II and Tier-III markets**. - **Distribution**: - 254 branches, strong **OEM partnerships** (e.g., Hero MotoCorp), and dealer network. - 94% of customers are **new-to-bank (NTB)**. - **Financials (Apr 2025)**: - Loan Book: ₹468.2 crore (166% YoY growth). - Yield: ~20%. - NPA: Below 2%. - **Operational Enablers**: Integrated Loan Origination System (LOS), BRE-based credit scoring, and digital underwriting. #### **5. Affordable Housing & Micro-Mortgages** - **Target Segments**: EWS, LIG, MIG; first-time homeowners in Tier 2–4 towns. - **Key Features**: - Informal income assessment, decentralized due diligence. - Support for **PMAY Urban 2.0 subsidy claims**. - **Paperless onboarding** with 7–9 day turnaround. - **Performance**: - **Ujjivan Housing**: Among the **fastest-growing** affordable housing lenders in India (45% 2Y CAGR). - **Micro-mortgage segment**: Strong portfolio quality, higher yields (~13%), and expanding in Eastern India. - **Strategy**: Deepening cross-sell from microfinance and CASA customers. #### **6. MSME Lending – Formalization and Scalability** - **Market Opportunity**: ₹35 lakh crore market; ₹30 lakh crore unmet gap. - **Product Portfolio**: - **Loan Against Property (LAP)**: Long-term secured lending. - **Working Capital (WC)**: OD/CC and WCDL. - **Supply Chain Finance (SCF)**: Anchor-led financing with zero collateral. - **Digital Edge**: Uses GST, bank statement, and ITR data via LOS for automated underwriting. - Includes **Early Warning System (EWS)** for proactive risk management. - **Growth Plan**: Expand from 350 to **>750 specialized branches by FY30**, focusing on metro, Tier 1/2, and peri-urban areas. --- ### **Retail Liabilities & Deposit Franchise** - **Liability Strategy**: Build a **stable, granular, and low-cost deposit base**. - **Retail Deposit Mix**: 72% of total deposits. - **CASA Growth**: - CASA Balance: ₹9,381 crore (24.3% of total deposits). - **Target**: Increase CASA ratio to **35% by FY30**. - **Expansion Plan**: Grow branch network from ~750 to **~1,150 branches** to drive deposit mobilization. - **Customer-Centric Offerings**: - Maxima Savings/Current Accounts (premium). - Garima (for women), Senior Citizen, NRI, and HNI-focused products. --- ### **Financial Institutions & Government Banking (FIGB) – Institutional Anchor** - **Liability Mobilization**: - Mobilized over ₹7,500 crore in FY22–23. - Source: Co-op banks, RRBs, MFs, insurers, and NBFCs. - **Wholesale Lending**: - Lends to high-quality NBFCs/MFIs (95% rated A- or above). - Disbursement (FY24–25): ₹2,785 crore. - **Growth Plan**: - Expand geographic presence. - Launch digital payment solutions and flexible credit products. - Strengthen partnerships with State Govts and PSUs. --- ### **Third-Party Products (TPPs) & Fee-Based Income** - **Product Suite**: - Life, health, and general insurance. - Demat & Trading (via SMC Global). - Atal Pension Yojana, NPS. - **Retail Cross-Sell**: - Growing at 20–30% YoY. - Premium collections up 26% in FY20–21. - **Future Plans**: - Launch **telesales and InsurTech platforms**. - End-to-end **digital claims management**. - Expand mutual funds via AMFI license. --- ### **Digital Transformation & Innovation** - **Hello Ujjivan App**: India’s first **voice-visual-vernanular mobile banking** app, serving ~73,500 users. Supports 9 languages, accessible to semi-literate users. - **Loan Origination System (LOS)**: - Fully digital, available on Google Play Store. - Enables **instant approvals and disbursement**. - **API Banking Platform**: - 169+ APIs live via *ujjivansfb.in/apibanking*. - Partnerships with fintechs such as **Progcap (SCF), NIRA, LoanTap, Setu, PayNearby**. - **Robotics & Automation (RPA)**: - Automated 51 processes in FY24–25, saving **7.08 lakh man-hours**. - RPA used in reconciliations, onboarding, and decisioning. --- ### **Data & Analytics – Competitive Advantage** - **Data Scale**: - Processes **50 lakh+ loans and 10 crore+ transactions monthly**. - Maintains **1,200+ near real-time data elements** on 95.1 lakh customers. - **Analytics Usage**: - Scorecard and behavioral models for credit and collections. - Look-alike modeling for customer acquisition. - **Machine learning** for fraud detection (e.g., money mules). - **Performance Metrics**: - Generated **₹69 crore in incremental business** in Q1 FY26. - Recovered **₹4 crore from written-off accounts** (>720 DPD). - **RBI Recognition**: - Achieved **93.9/100** in Data Quality Index (FY25), among industry top performers. --- ### **Multi-Channel Distribution Strategy** - **Physical**: 753 branches, 613 ATMs/ACRs, 350+ Money Mitra BC agents. - **Digital & Remote**: - Mobile/Internet Banking (9 languages). - **Video Banking** (KYC, documentation via remote channels). - WhatsApp, Phone Banking (24/7 in 13 spoken + 9 IVR languages). - **Customer Service**: - Centralized CRM-based complaint system. - DigiMitra and Virtual Relationship Managers (VRM) for support.