1. Opening Hook
Just when markets thought microfinance drama would drag into eternity, Ujjivan decided to drop a plot twist.
Q3 FY26 arrived with deposits growing faster than WhatsApp forwards during elections and credit costs finally learning some discipline.
Management sounded confident, numbers behaved for once, and analysts mostly stopped asking “what went wrong” and moved to “how much better can it get.” Even the Universal Bank license—still pending—was mentioned without nervous laughter.
This wasn’t a turnaround quarter screaming for applause.
This was a “we told you normalization would come” quarter.
Read on, because beneath the calm tone and RBI politeness lies a bank quietly resetting its earnings engine—and daring the market to notice.
2. At a Glance
- Deposits up 22.4% YoY – Liquidity is back; panic withdrawals stayed home.
- CASA at 27% – Management smiling, still wants more free money.
- Loan book up 21.6% YoY – Growth with fewer bad surprises, finally.
- NIM at 8.2% – Costs fell faster than analyst expectations.
- GNPA at 2.4% – Still not pretty, but clearly sobering up.
- Credit cost ₹195 cr – Detox phase officially underway.
- PAT ₹186 cr – Profitability remembered it’s supposed to grow.
3. Management’s Key Commentary
“The operating environment remains favorable with GDP growth at 8.2%.”
(Macro doing the heavy lifting, management taking
the credit.) 😏
“Deposits grew 7.7% QoQ and 22.4% YoY.”
(Funding stress? Never heard of her.)
“CASA has stayed above 27% for two consecutive quarters.”
(Free money is addictive; we want more.)
“Cost of funds declined to 7.08%.”
(Rate cuts finally showing up where it matters.)
“Bucket X collection efficiency improved to 99.7%.”
(Borrowers remembered EMIs exist.)
“Credit costs have moderated as expected.”
(Translation: the worst is behind us.)
“We remain hopeful on the Universal Bank license.”
(Still waiting. RBI left us on read.) 😐
4. Numbers Decoded
Metric Q3 FY26 QoQ Trend Commentary
-----------------------------------------------------------------------
Deposit Growth ₹42,223 cr ↑ 7.7% Liquidity comfort restored
Loan Book ₹37,057 cr ↑ 7.1% Broad-based growth
NIM 8.2% ↑ 30 bps Cost cuts doing magic
GNPA 2.4% Flat Damage contained
PCR 76% ↑ 300 bps Conservative mood
Credit Cost ₹195 cr ↓ Normalization visible
ROA 1.5% ↑