Overview
- Ujjivan Small Finance Bank, which disclosed Monday that the RBI returned its universal bank application, was told to reapply after it proves a more diversified loan book.
- As of Q3 FY26, the lender reported a ₹37,057 crore portfolio with about 52% in loans to micro-borrowers, a concentration the regulator views as too high given recent stress in that segment.
- The bank said it will keep shifting toward secured products and plans to scale its book to ₹1 lakh crore by FY30 with 65–70% in secured loans across housing, MSME, vehicle, gold, and agri finance.
- Broker Equirus said the stock could fall after the decision and noted unsecured loans, which lack collateral, fell from 61% at application to 51% by March 2026.
- RBI approvals weigh diversified lending and steady performance, with AU Small Finance Bank gaining in-principle clearance in August 2025 while Jana SFB’s bid was rejected two months later.