A fresh roadmap with bold numbers and sharper focus on secured lending.

How far can a small finance bank go in less than a decade? Ujjivan Small Finance Bank thinks the answer is ₹1 lakh crore. The lender, in its five-year strategy update of September 2025, announced a gross loan book target of one trillion rupees by FY30.

This plan has drawn interest from investors and regulators alike because it stretches both the ambition and the discipline of a young bank.

Loan Book Growth Path To FY30

Ujjivan Small Finance Bank loan book growth FY30 is not a vague claim. The bank showed how it has moved from ₹7,560 crore in FY2017 to ₹33,287 crore in Q1 FY2026. The growth trend has been steady.

The management now speaks of a threefold rise in the next four years. The shift towards secured lending will support this journey. Reports confirm that secured loans made up only 16 percent in FY2019, but the share rose to 46 percent by June 2025. The plan is to push this further to 65–70 percent by FY2030.

The shift from unsecured to secured lending is visible in the following figures.

Year	Gross Loan Book (₹ crore)	Secured Share (%)	Source
FY2017	7,560	NA	Company Annual Report 2017
Q1 FY2026	33,287	46	Investor Presentation Sept 2025
FY2030 (Target)	1,00,000	65–70	Five-Year Roadmap 2025

This data shows the scale of the change. Tripling the loan book in four years will require annual growth of 20–25 percent, a pace confirmed by the September 2025 ICICI Securities report.

₹1 Lakh Crore Target Backed By Deposits

The Ujjivan SFB ₹1 lakh crore lending target rests on a deposit base that can support the credit push. Retail deposits are already 72 percent of total deposits. Current Account Savings Account ratio stands at 24–25 percent in June 2025.

The management wants this to reach 35 percent by FY2030. As of Q1 FY2026, the deposit base was ₹38,619 crore. Analysts now project a threefold increase in deposits by FY2030.

Metric	Q1 FY2026	Target FY2030	Source
Retail Deposits (%)	72	Above 75	Company Presentation Sept 2025
CASA Ratio (%)	24–25	35	Strategy Update Sept 2025
Deposit Base (₹ crore)	38,619	~1,20,000	ICICI Securities Report 2025

The table shows the bank cannot achieve its loan book goal without trebling deposits. This makes deposit mobilisation a central part of its plan.

Gross Loan Portfolio Outlook For 2030

Ujjivan Small Finance Bank gross loan portfolio 2030 is being planned with more focus on credit quality. ICICI Securities, in its September 2025 report, showed how credit costs touched 240 basis points in FY2025.

With more secured lending, this is projected to fall to 100–150 basis points by FY2030. Net interest margin is expected to hold between 6.5–7 percent during this period.

Credit Cost And Margin Forecast

Year	Credit Cost (bps)	Net Interest Margin (%)	Report
FY2025	240	6.5	ICICI Securities Sept 2025
FY2027	180	6.8	ICICI Securities Sept 2025
FY2030	100–150	7	ICICI Securities Sept 2025

These projections underline how lower credit costs and stable margins will shape the loan book quality.

Financial Growth Plan For FY30

The Ujjivan SFB financial growth strategy FY30 includes profitability and efficiency targets. Cost-to-income ratio, at 62 percent in FY2025, is guided to come down to 55 percent by FY2030. Return on assets is expected to touch 1.8–2 percent. Return on equity may rise from 13 percent to 16–18 percent.

The plan also features higher technology spend. The bank now spends about ₹200 crore annually on operations and ₹50 crore on fresh projects. This is expected to rise to ₹500 crore by FY2030. The branch network will expand by 400 outlets, growing from 752 to about 1,150.

Ratio	FY2025	FY2030 Target	Source
Cost-Income (%)	62	55	Management Update Sept 2025
RoA (%)	1	1.8–2.0	ICICI Securities Sept 2025
RoE (%)	13	16–18	Company Presentation Sept 2025

This financial plan shows how efficiency, technology, and network growth will support the lending goal.

Expansion Plan Beyond FY2030

The Indian banking sector has seen ambitious expansion attempts before. One notable case was Bandhan Bank in 2023, when it launched a major growth drive. However, that effort faced hurdles due to weak asset quality and rising credit costs.

A relevant article from LoansJagat explores why banks raised fixed deposit rates in 2025. It provides important context on how banking strategy reacts to economic pressures and how deposit mobilisation plays a key role in lending growth. That coverage can be read here: Why Banks Are Offering Higher FD Interest Rates in 2025

In contrast, Ujjivan SFB’s strategy focuses on using retail deposits and secured lending, rather than rapid growth alone. This difference in focus may help avoid the pitfalls that troubled banks like Bandhan in the past.

Past Government And RBI Actions

Government and RBI rules have always shaped how small finance banks grow. Small finance banks are required to maintain 75 percent of adjusted net bank credit in priority sector. They also have to meet sub-targets in agriculture, MSME, and weaker sections.

In past years, RBI penalised banks that missed these norms. Ujjivan has built its roadmap with these compliance needs in mind. It is also expected to use Priority Sector Lending Certificates to balance targets when required.

Conclusion

Ujjivan Small Finance Bank has moved from a niche player in 2017 to an ambitious lender aiming at a ₹1 lakh crore loan book by FY2030. The journey rests on four pillars: a stronger deposit base, higher secured lending, tighter cost control, and wider branch reach. Reports by ICICI Securities and company updates of September 2025 provide the timeline and numbers behind this strategy.

The coming years will test how the bank executes these plans. The numbers are clear, the targets are bold, and the market will judge them by FY2030.

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