Ujjivan Small Finance Bank Shares Drop Following RBI's Rejection of Universal Bank Application
Ujjivan Small Finance Bank slips after RBI returns universal bank application
Business Standard
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Ujjivan Small Finance Bank's shares fell by 3.22% to ₹58.40 after the Reserve Bank of India returned its application to transition to a universal bank. The RBI noted the need for further diversification in the bank's loan portfolio before reapplication can be considered.
- 01Ujjivan Small Finance Bank's shares declined by 3.22%.
- 02The Reserve Bank of India returned the bank's application for universal banking status.
- 03RBI cited the need for further diversification in the bank's loan portfolio.
- 04Ujjivan serves approximately 99.6 lakh customers across 26 states and Union Territories.
- 05The bank's net profit increased by 70.98% in Q3 December 2025 compared to the previous year.
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Shares of Ujjivan Small Finance Bank fell 3.22% to ₹58.40 following a decision by the Reserve Bank of India (RBI) to return the bank's application for transitioning to a universal bank. In a communication dated April 13, 2026, the RBI acknowledged Ujjivan's progress in diversifying its loan portfolio but emphasized that further improvements are necessary. The rejection delays Ujjivan's plans to expand its product offerings and scale operations beyond the small finance bank framework. Ujjivan Small Finance Bank, a Scheduled Commercial Bank, serves around 99.6 lakh customers through 777 branches across 339 districts in 26 states and Union Territories. As of December 31, 2025, the bank's gross loan book was ₹37,057 crore, with deposits totaling ₹42,223 crore and a net worth of ₹6,519 crore. Notably, the bank's standalone net profit surged 70.98% to ₹185.72 crore in Q3 December 2025 compared to the same quarter in 2024, driven by a 16.12% increase in total income to ₹2,047.40 crore.
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The rejection of the universal bank application may hinder Ujjivan's ability to offer a broader range of financial products, potentially affecting its customer base and future growth.
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