Ujjivan SFB to raise ₹2,000 crore via QIP; awaits RBI licence decision

Ujjivan SFB will raise Rs 2,000 crore through QIP in 18-24 months to fund growth towards a Rs 1-trillion loan book by FY30 while awaiting RBI's call on a universal bank licence

Ujjivan Small Finance Bank (Ujjivan SFB) is looking to raise ₹2,000 crore through a qualified institutional placement (QIP) over the next 18–24 months, its Managing Director & Chief Executive Officer (MD & CEO) Sanjeev Nautiyal said on Monday.

 

The bank is targeting a gross loan book of ₹1 trillion by 2029-30 (FY30), with plans to expand its branch network to 1,150 from the current 752. It also aims to increase the secured share of its loan book to 65–70 per cent and raise the share of current account and savings account (Casa) deposits to 35 per cent.

 

“If we get a universal bank licence, it will only open the doors for many more activities. But this ₹2,000 crore raise is part of the strategic plan we have drawn, irrespective of what decision the Reserve Bank of India (RBI) makes on our universal bank licence application,” Nautiyal said.

 

 

In February, Ujjivan SFB submitted an application to the RBI for a universal bank licence, and the lender is hopeful of a decision by December-end. 

 

“As we understand, they may be in the advanced stages of processing, after which the application will be put up to a committee of relevant officials who will take a call. The queries raised were largely clarifications to ensure the right perspective on a voluminous document. It’s business as usual — the kind of scrutiny the RBI would undertake for any entity applying,” Nautiyal said. 

 

As of FY25, the bank’s capital adequacy ratio (CAR) stood at 23.1 per cent, while its gross loan book was at ₹32,122 crore. Casa deposits accounted for 25.5 per cent of total deposits.

 

The lender plans to strengthen its Casa offerings and boost other income through initiatives such as enhancing its authorised dealer licence, expanding ASBA (application supported by blocked amount) services, distributing mutual funds, deepening retail insurance distribution, and offering co-branded credit cards.

 

Nautiyal added that the bank’s growth strategy, including its plan to invest ₹500 crore in strengthening information technology (IT) infrastructure, is independent of the universal bank licence outcome.