USUjjivan Small Finance Bank542904Earnings call transcript

Q2 FY27 call: deposits cross INR50,000 crores, INR409 crore capital raise proposed

Transcript of the Q2 and H1 FY27 earnings call shared.

By ScoutQuest · Thu 22 Oct 2026, 5:04 PM IST · 2 min read

Deposits

INR50,643 crores, up 29.2% YoY; CASA 26%

Gross loan book

INR45,699 crores, up 32.1% YoY, 12.4% YTD growth

Profit and asset quality

GNPA 2.1%, NNPA 0.3%; all-time high quarterly PAT of INR365 crores, ROA 2.4%

Management opened the call with the quarter's headline numbers, then set out growth, capital and asset-quality details.

Business growth

• Total deposits reached INR50,643 crores, up 29.2% year-on-year, with CASA at 26%.
• Gross loan book reached INR45,699 crores, up 32.1% year-on-year, which management described as 12.4% YTD growth and in line with full-year guidance.
• Secured business lines now form 52.1% of the loan book.
• The micro banking (unsecured) portfolio reached INR22,037 crores and is guided to grow around 12% to 14% for the full year.
• Affordable housing reached INR10,056 crores; micro mortgages INR2,031 crores, up 85.7% year-on-year; MSME INR3,871 crores, up 51.3%; gold loans INR1,275 crores, up 209.8%; agri banking INR914 crores, up 79.2%; 2-wheeler loans INR1,081 crores, up 64.8%.

Proposed capital raise

• The bank proposes to raise equity capital of INR409 crores from QIBs by issuing shares on a preferential basis to International Finance Corporation, Bajaj Life Insurance, HDFC Life Insurance and Aditya Birla Sun Life Insurance, subject to shareholder approval.
• Holding RWA constant at September 2026, the raise would increase CRAR by approximately 1.2% from 20.69% on a pro forma basis.
• Because the fundraise is at a premium to current BVPS, management said it would lead to accretion of INR0.8 per share as of September 2026.

Asset quality

• GNPA at 2.1% and NNPA at 0.3%.
• Slippage ratio at 1.6% of average gross loan book; credit cost at 0.7% of ATA; PCR stable at the 85% level.
• Total write-off for the quarter was INR59 crores.
• Micro banking Bucket X collection efficiency was 99.7%, in line with Q1.

Profitability and margins

• Total income reached INR2,450 crores and net interest income rose 35% year-on-year to INR1,244 crores.
• Net interest margin was 8.4%; other income rose 17% sequentially.
• Operating expenses rose 6% quarter-on-quarter, with employee expenses up 3% and other opex up 10%, attributed to the brand campaign and branch expansion.
• Profit after tax was an all-time high of INR365 crores with ROA of 2.4%.

Guidance and other management comments

• The bank is on track to meet the full-year loan book guidance, and expects micro banking to deliver around 12% to 14% for the full year.
• Cost of funds was held at around 6.9%; management expects it to start moving upwards as the Q1 rate increase flows through.
• In H1 FY27 the bank added 104 branches and 1,335 employees; in gold loans it added 117 branches in H1 and plans a similar number in H2.
• The securitization pool was increased by INR500 crores in October, which management expects to be NIM accretive and P&L neutral.
• A new brand campaign with a new brand ambassador was launched in September 2026 and is expected to reach around 35 crores viewers.
• Following the MD's decision to take early retirement due to health reasons, the NRC is actively engaged to ensure timely submission of the MD candidate to the regulator.

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