Ujjivan Eyes Universal Bank Nom

Ujjivan Small Finance Bank (SFB) expects clarity regarding his global bank license request by December this year. The bank also plans to raise about 2000 rupees through the qualified institutional position (QIP) over the next 18-24 months to support growth, says Sanjeev Nautiyal, MD and CEO, Ujjivan Small Finance Bank.

The bank confirmed that its request, which was submitted in February, has had multiple tours of clarifications with the central bank and is now in an advanced stage of treatment. “We still hope to look at our credibility, integrity, and busy record,” said Nautiyal, while stressing that the expansion plan is still unchanged regardless of the result.

The administration confirmed that a five -year road map is independent of RBI decision, although transferring to a global bank will open more doors and opportunities for the lender.

On the growth side, Ujjivan has repeated its commitment to business loans and microfinance, with highlighting that the subscription mechanisms and the choice of customers and their collection have left her healthy book more than industry during the last opposite winds.

The administration also clarified that capital breeding plans are linked to its broader goal in the public budget represented in achieving a total book of rupees of 1 rupees by 2030.

The bank simultaneously intensifies its technological investments. It is currently spending about 200 rupees annually on it, and three quarters of running and fourth operations in new initiatives, but it expects to reach nearly 500 rupees during the next five years.

Retail lending is still the basic pillar, as it represents more than 90 % of the public budget, with a deliberate shift towards guaranteed loans. The guaranteed asset share increased from 30 % in March 2024 to 46 % by June, and it is expected to climb it to 65-70 % by 65 %. The administration indicated that this diversification will lead to stability, reduce fluctuations, and enhance the vision of profits.

On the microfinance portfolio, Ujjivan admitted the pressure that the sector faced in the past decade, but said that insects have reached their peak across most states, and recovery is underway. “The pain is already behind us … growth is just around the corner.”

Looking at the future, Ujjivan asserts that the comprehensive bank license will be an ideal result of implementing its strategy faster and making its brand more competitive, but focusing on MSMES micro forces, retailers, and technology -led growth will continue regardless of organizational decisions.