CRISIL Ratings Limited has reaffirmed its 'Crisil A1+' rating on Ujjivan Small Finance Bank Ltd (Ujjivan SFB)'s certificate of deposits programme. The rating action pertains to an amount of ₹375 crore, a reduction from the previous ₹2500 crore. Concurrently, CRISIL Ratings has withdrawn its rating on ₹2,125 crore of certificate of deposits upon the bank's request.

The reaffirmation of the rating reflects Ujjivan SFB's strong presence in the microfinance business, coupled with gradual expansion into other asset classes. The bank's strong financial risk profile is supported by adequate capitalization and a normalization in profitability. However, these strengths are partially offset by a relatively small, though growing, base of retail deposits and the susceptibility of asset quality to the modest credit risk profile of its borrowers.

Recent financial performance indicates that gross advances grew by 15.4% (annualized) in the first half of fiscal 2026, reaching ₹37,055 crore as of December 31, 2025. The micro-banking portfolio's share has decreased to 54% as of September 30, 2025. Gross non-performing assets (GNPA) stood at 2.39% on a provisional basis as of December 31, 2025. Profitability saw a moderation in fiscal 2025 with a return on managed assets (RoMA) of 1.6%, impacted by lower net interest margins and higher operating expenses. Capitalization remains adequate, with a tier I and overall capital adequacy ratio (CAR) of 19.9% and 21.4% respectively, as of September 30, 2025. Deposits grew by 8.4% (annualized) in the first half of fiscal 2026, reaching ₹42,219 crore as of December 31, 2025, with a CASA ratio of 27.3%.