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ICICI Securities Report
Despite a leadership change of Mr. Sanjeev Nautiyal, incumbent MD, who has requested an early retirement due to health concerns, Ujjivan Small Finance Bank Ltd. remains confident of meeting its FY27 guidance.
Management expects RoA to remain at 1.8–2%, driven primarily by operating leverage and lower credit costs with advances growth at ~25% YoY in FY27.
Net interest margin is expected to remain around current levels of 8.5%. Further, taking cognisance of the lower-than-anticipated slippages and an encouraging asset quality trend in Jul'26 — especially in the MFI segment — it guided for 0.9–1% credit cost in FY27, and ICICI Securities believes it would settle at the lower end of the guidance.
It is adequately capitalised to sustain growth momentum.
Key risks:
- Lower-than-expected margins and
- slower-than-expected AUM growth, particularly due to slow growth in unsecured portfolio.
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