Ujjivan SFB Plans Rs 2,000 Crore Fundraise Amid RBI License Wait
- Ujjivan SFB plans to raise capital via a QIP over the next 18–24 months to support growth.
- The bank awaits a decision on its universal banking license, expected by December 2025.
- Targets include tripling liabilities, a CASA ratio of 35%, expanding the loan book to Rs 1 lakh crore, and adding 500 branches by FY30.
Ujjivan Small Finance Bank (SFB) has announced plans to raise around Rs 2,000 crore over the next 18-24 months through a Qualified Institutional Placement (QIP) to support its long-term growth strategy. The bank is awaiting a decision from the Reserve Bank of India (RBI) on its application for a universal banking license.
Sanjeev Nautiyal, MD & CEO of Ujjivan SFB, said the bank has submitted its license application and responded to multiple rounds of queries and clarifications from the RBI. He expressed hope that a final decision could come by December 2025.
Looking ahead to FY30, Ujjivan SFB has set ambitious targets. The bank aims to triple its liabilities, achieve a CASA ratio of around 35%, and expand its gross loan book to about Rs 1 lakh crore. Plans also include adding 500 new branches, maintaining a cost-to-income ratio of 55%, and keeping operating expenses below 5% of average assets.
In the nearer term, for FY26, the bank projects asset growth of 20%, a CASA deposit ratio of 27%, return on assets (ROA) of 1.2-1.4%, and return on equity (ROE) between 10-12%. The cost-to-income ratio is expected to be around 67%.
Nautiyal emphasized that Ujjivan SFB’s five-year growth plan is designed to continue regardless of the RBI’s decision, ensuring that strategic priorities stay on track and the bank remains focused on sustainable growth.
