UJJIVAN SMALL FINANCE BANK LTD – CONCALL HIGHLIGHTS
#Q1FY27
MD & CEO Change
- Sanjeev Nautiyal took early retirement due to health concerns; Board accepted the request.
- Carole Furtado to take charge as Interim MD & CEO, subject to RBI approval.
- Carole has 30+ years of banking experience and has been part of Ujjivan's leadership journey.
- NRC has expedited the search for a permanent successor and expects to submit names to RBI within 3–4 months.
- Internal candidates will be considered; Carole has expressed interest in the permanent MD role.
- Board confirmed the exit was solely due to health/personal reasons, with no issue regarding business strategy or bank operations.
- Board acknowledged the need for more robust succession planning going forward.
Business Performance
- Q1 loan book grew approximately 29% YoY.
- GNPA stood at 2.2%, with asset-quality trends remaining stable.
- Secured book share has crossed 50%, supporting continued diversification.
- Management said secured and unsecured asset-quality trends are better or in line with Q1 performance.
- Bank remains confident about maintaining business momentum in FY27.
Deposits & Funding
- CASA grew a healthy 38% YoY despite industry-wide pressure on deposits.
- Q1 cost of funds stood at 6.9%.
- Management highlighted disciplined funding of loan-book growth at relatively low cost.
- Bank remains well capitalized to support FY27 growth plans.
FY27 Guidance
- Management reiterated FY27 guidance with no change in strategy.
- Growth plans remain intact despite the sudden leadership transition.
- Management explicitly stated that even if the planned capital raise is delayed, it will not impact FY27 performance/growth plans.
- Existing capital is considered sufficient to support FY27 growth.
- Strategic diversification of the loan book remains well on track.
MSME Strategy
- Vikas Agarwal has joined as Business Head – MSME.
- He is a CA with 25+ years of banking experience across MSME, business banking, retail banking, credit, products and distribution.
- MSME expansion will proceed as originally planned for FY27.
- Management indicated that further details on the MSME strategy can be expected with the Q2 earnings call.
Universal Banking Journey
- Management confirmed the bank continues progressing toward its stated strategic objectives.
- The increasing share of secured assets and diversification remain key components of the transition journey.
- However, management did not provide any fresh timeline for approaching RBI regarding the universal-bank transition.
- Focus remains on executing the already-established FY27 objectives.
Asset Quality & El Niño
- Management continues to monitor potential El Niño-related risks.
- Current trends across both secured and unsecured businesses are better or in line with Q1.
- Management currently sees no material deviation or major impact on asset quality/business trends.
- West Asia-related concerns have also not caused any significant change in the current outlook.
Leadership & Governance
- Board emphasized strong governance, robust internal controls and an experienced management team.
- Management believes business priorities and execution capabilities remain unaffected by the leadership change.
- Board and senior management depth has continued to strengthen.
- Succession search has been accelerated following Nautiyal's early retirement.
Outlook
- Festive-season demand outlook is considered promising, supported by robust domestic economic conditions.
- Capacity additions are expected to support growth during the upcoming festive period.
- A new brand campaign is planned for the festive season.
- Management remains confident of delivering strong performance in FY27 and beyond.
Stock Fundamental in detail
@Fundamental3
KEY TAKEAWAY
- Leadership changed, but FY27 growth, capital strength & asset quality remain on track.
September 3, 2026 492 1
