Ujjivan Small Finance Bank eyes ₹2,000 crore fundraise via QIP

Ujjivan Small Finance Bank (SFB) is planning to raise around ₹2,000 crore within two years via a Qualified Institutional Placement (QIP) with a final decision expected by December, according to sources. 

The move aligns with Ujjivan SFB’s long-term growth strategy as it awaits the Reserve Bank of India's (RBI) decision on its application for a universal banking licence.

However, Fortune India could not independently confirm the fundraising from the lender.

At the same time, Sanjeev Nautiyal, managing director & CEO of Ujjivan SFB, in an official statement on Tuesday, laid out the bank’s expansion plans. “Our strategy is to expand our branch network from 752 to approximately 1,150, increase the secured share of the loan portfolio to 65-70%, raise Casa to 35% of deposits, and double branch productivity. We aim for annual gross loan book growth of 20-25%, with a target RoE of 16-18% and RoA of 1.8-2% by FY30,” he stated. 

Ujjivan has been steadily diversifying its loan portfolio, with secured lending increasing from 16% in FY19 to 46% as of Q1FY26. The bank plans to increase the share of its secured loan book to approximately 65-70%, driven by growth in affordable housing, micro mortgages, MSME lending, vehicle finance, gold loans, and agri loans. Additionally, the bank intends to expand its product offerings by introducing products for mid-corporate lending, the release added.

While the microbanking portfolio, mainly consisting of group loans, forms the foundation of the scale, the bank intends to expand its portfolio of individual loans as customers progressively graduate to individual loans, according to the Ujjivan press release.

As of Q1FY26, Ujjivan is well-capitalised with a capital to risk-weighted asset ratio of 22.8% and a Tier I capital ratio of 21.2%. The move towards more secure loans with lower risk weights improves capital efficiency and creates room for sustained growth without the need for urgent capital raising.

Ujjivan has developed a detailed liability franchise, with retail deposits (Casa and retail term deposits) accounting for 72% of the total deposit base of ₹38,619 crore as of Q1FY26. Casa balances amounted to ₹9,381 crore, accounting for 24.3% of deposits, aligning with its long-term goal of reaching 35% of total deposits by FY30.

This growth will be driven by the planned expansion of the branch network from 752 to approximately 1,150 branches, enhanced cross-selling to a larger customer base, and a range of products, including IPO-ASBA, mutual fund distribution, remittances, and co-branded credit cards, the lender added.