Ujjivan Small Finance Financial institution (SFB) expects readability on its common banking licence software by December this 12 months. The financial institution additionally plans to boost round Rs 2,000 crore via a professional institutional placement (QIP) over the following 18–24 months to assist progress, says Sanjeev Nautiyal, MD and CEO, Ujjivan Small Finance Financial institution.
The financial institution confirmed that its software, filed in February, has gone via a number of rounds of clarifications with the central financial institution and is now in a sophisticated stage of processing. “We stay hopeful taking a look at our credibility, integrity and observe document,” Nautiyal stated, whereas underlining that the plan to develop stays unchanged whatever the consequence.
The administration confused that its five-year roadmap is impartial of the RBI’s resolution, although a conversion right into a common financial institution would open extra doorways and alternatives for the lender.
On the expansion facet, Ujjivan reiterated its dedication to enterprise and microfinance loans, highlighting that its underwriting, buyer choice and assortment mechanisms have left its e book more healthy than the trade throughout current headwinds.
The administration additionally clarified that its capital-raising plans are tied to its broader stability sheet aim of reaching a Rs 1 lakh crore gross mortgage e book by 2030. “This 2,000 crore is a part of our strategic plan and is no matter the RBI’s resolution,” they stated.
The financial institution is concurrently stepping up its know-how investments. It at present spends about Rs 200 crore yearly on IT, three-fourths on operating operations and a fourth on new initiatives however expects to scale this as much as practically Rs 500 crore over the following 5 years.
Retail lending stays the mainstay, accounting for over 90% of the stability sheet, with a deliberate shift in direction of secured loans. The share of secured belongings has risen from 30% in March 2024 to 46% by June, and is projected to climb to 65–70% by FY30. This diversification, administration famous, would deliver stability, scale back volatility, and improve earnings visibility.
On the microfinance portfolio, Ujjivan acknowledged the stress the sector confronted previously decade however stated delinquencies have peaked throughout most states, and restoration is underway. “The pains are already behind us… progress is across the nook,” Nautiyal added.
Wanting forward, Ujjivan maintains {that a} common financial institution licence could be an optimum consequence to execute its technique quicker and make its model extra aggressive, however the concentrate on grassroots MSMEs, retail debtors, and technology-led progress will proceed no matter regulatory choices.
