Ujjivan Small Finance Bank (SFB) announced that the Reserve Bank of India (RBI) has returned its application to convert into a universal bank, citing the need for further diversification of its loan portfolio. The RBI noted the bank's recent efforts but indicated that more progress is necessary before reapplying. Ujjivan submitted its application in February 2025, alongside AU Small Finance Bank and Jana Small Finance Bank. While AU received approval last year, Jana's application was also returned. As of March 2026, Ujjivan's secured loans constituted 49.4% of its total loan book of ₹37,057 crore (approximately $4.5 billion USD), up from 43.5% in the previous year. The bank aims to increase secured lending to 65-70% by March 2030. The RBI's guidelines require listed small finance banks to meet specific criteria, including a net worth of at least ₹1,000 crore (approximately $120 million USD) and a satisfactory operational track record. Industry insiders suggest that the RBI is also considering additional factors such as governance standards and asset quality in its evaluation.