Why Ujjivan Small Finance Bank Share Price is Rising

In the Indian stock market today, a banking stock has been on the rise: Ujjivan Small Finance Bank.

Ujjivan Small Finance Bank is a leading SFB in India. offers banking services like home loans, business loans, personal & vehicle loans, online savings accounts, etc.

Recently, its share surged 8%, attracting the investors' attention.

So, what's charging up Ujjivan Small Finance Bank momentum?

Let's take a closer look.

2 Reasons Why Ujjivan Small Finance Bank Share Price is Rising

#1 QIP Fundraise

Shares of Ujjivan Small Finance Bank surged 8% after it announced plans to raise Rs 20 billion (bn) through a Qualified Institutional Placement (QIP) over the next 18-24 months to support its long-term growth strategy while awaiting a decision on its universal banking application from the RBI.

The MD and CEO of the bank stated that the bank has submitted its application for a universal baking license, which has undergone multiple rounds of queries and clarifications from the RBI.

Ujjivan Bank aims to triple its liabilities, achieve a CASA ratio of around 35%, and grow its gross loan book to Rs 1,000 bn by FY30.

It also plans to add 500 new branches, maintain a cost-to-income ratio of 55%, and keep operating expenses below 5% of average assets.

The bank projects FY26 growth with 20% asset growth, a 27% CASA deposit ratio, 1.2-1,4% ROA, 10-12% ROE, and cost-to-income ratio around 67%.

#2 FII & Mutual Fund Buying

Following FII selling last year, there was a turnaround in the March 2025 quarter as FIIs began increasing their stake again.

Then FII holdings rose again from 19.51% in March 2025 to 19.55% in June 2025.

Mutual funds have also bought the stock recently. Mutual funds increase their stake from 4.7% in March 2025 to 10.9% in June 2025.

What Next?

Ujjivan Small Finance Bank aims to accelerate growth by strengthening its liability franchise, expanding asset products, and improving operational efficiency.

The bank plans to revamp its housing loan product to improve accessibility and reduce processing time, helping it compete with major banks and NBFCs.

However, the bank's ambitions extend beyond this. It is actively exploring opportunities in gold loans, mutual funds, housing loans, and potential collaborations with fintech firms.

With a diversified customer base of over 9.7 m across 26 states and union territories, it's well-positioned to focus on aspiring and emerging affluent segments along with the mass market.

How Ujjivan Small Finance Bank Shares Have Performed Recently

In the past five trading sessions, shares of Ujjivan Small Finance Bank surged 10%, extending its six-month rally to 35%.

The stock touched its 52-week high of Rs 51.8 on 10 June 2025 and a 52-week low of Rs 30.85 on 28 January 2025.

About Ujjivan Small Finance Bank

Ujjivan Small Finance Bank, as a mass-market bank, focuses on serving the underserved segments of society through financial and digital inclusion.

It has a network of over 600 branches and 12,000 ATMs across 24 states and union territories. The bank also offers internet banking, phone banking, and mobile banking facilities to customers.

For more details, see the Ujjivan Small Finance Bank company fact sheet and quarterly results. For a sector overview, read our banking sector report.

You can also compare Ujjivan Small Finance Bank with its peers:

Ujjivan Small Finance Bank vs DCB Bank

Ujjivan Small Finance Bank vs Bank of Maharashtra

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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