RBI May Be In Advanced Stages Of Processing Bank License Application, Says Ujjivan CEO Nautiyal

Ujjivan Small Finance Bank is hopeful about its application for a universal banking licence. The managing director and chief executive officer, Sanjeev Nautiyal, in a press conference, said that they are hoping to potentially receive a decision from the Reserve Bank of India by December.

Nautiyal noted that the bank has provided the necessary due diligence information to the RBI and believes the central bank may be in an advanced stage of assessing the application.

"We remain hopeful that RBI may come to a decision on the universal banking licence application by December," he stated.

Nautiyal also provided an outlook on the bank's exposure to the MSME sector, particularly in light of recent US tariffs.

He assured that, based on an internal review, the bank has "limited exposure to MSME exporters", which has so far insulated it from direct impacts of the tariffs.

While acknowledging a potential "general indirect impact rippling through the economy", he maintained confidence in the bank's current position.

The bank plans to expand its branch network to 1,150 by fiscal year 2030 and aims to triple its deposits, according to the CEO, with a focus on increasing the current account savings account ratio to around 35%.

The bank's gross loan book is projected to reach approximately Rs 1 lakh crore, with a significant shift towards secured loans, which are expected to constitute 65% to 70% of the book.

This strategic diversification is anticipated to lead to lower credit costs, which are projected to average 1.0% to 1.5% of the gross loan book in FY30. These financial goals, including a return on assets of 1.8% to 2.0% and a return on equity of 16% to 18%, are planned regardless of the universal banking licence outcome.

Nautiyal added that the bank is committed to its fundraising plan of Rs 2,000 crore via a Qualified Institutional Placement, independent of the RBI's approval.