1. At a Glance
Ujjivan Small Finance Bank (USFB) just posted a ₹103 Cr Q1 profit. Not bad… until you see that it’s down 65% YoY and 50% of it was “other income.” GNPA ticked up, margins fell off a cliff, and promoter holding dropped to 0%. Yeah, it’s giving “public sector vibes” now.
2. Introduction with Hook
If banks were reality shows, Ujjivan would be Indian Idol. It came from humble beginnings, hit high notes (₹1,281 Cr FY24 profit), and now… we’re in the “emotional montage” phase.
In Q1 FY26, loan book grew 11% YoY to ₹33,287 Cr. Deposits jumped 19% YoY to ₹38,619 Cr. But P&L? Think climax twist: Net Profit is down 58% YoY.
Meanwhile, the stock is trading at 16.7x P/E — cheaper than its peers, but maybe that’s a warning label, not a discount.
3. Business Model (WTF Do They Even Do?)
Basically, Ujjivan lends small amounts to people with even smaller credit histories. Their dream? Bring banking to the economically active poor — and maybe score a universal banking license along the way.
Here’s the TL;DR:
- Retail Loans: 85% (includes group loans, MSME, housing)
- Treasury: 12% (you know, where banks hide losses)
- Wholesale Banking: 3% (because someone had to pitch this to HNIs)
It’s like being a dhobi in a rainstorm — everyone hands you dirty laundry, but you have to clean it with limited water and
