Ujjivan Small Finance Bank wants to upgrade to become a universal bank and applied for the license in February 2024, and are hoping the RBI will decide by December 2025. If approved, Ujjivan can offer a wider range of services like loans to large businesses, investment banking, and insurance. Right now, it operates as a Small Finance Bank, which has some limitations compared to a universal bank (like offering all types of banking services across India).
In February 2024, Ujjivan Small Finance Bank applied for universal bank license after meeting the following RBI’s new rules:
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Listed on the stock market.
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Net worth above ₹1,000 crore.
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Profitable for 2 years.
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Has operated for at least 5 years.
Ujjivan Small Finance Bank Future Growth Plans
- The Bank plans to raise capital by raising ₹2,000 crore in the next 18-24 months through Qualified Institutional Placement (QIP) — a way for companies to raise money by issuing shares to big investors.
- Ujjivan Bank plans to expand its branch network from 752 to 1,150 branches.
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The bank aims to grow its Gross Loan Book (GLB) to ₹1 lakh crore by FY30. In 2017 its loan book was ₹7560 crore in 2017 (when it became a small finance bank) and ₹33,287 crore in Q1 FY25.
- Bank target is to increase the secured loans to 65%-70%, through affordable housing, Micro mortgages, MSME lending and Vehicle, gold, and agriculture loans.
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By 2030, it wants to have a more secure loan portfolio. Here is the loan book breakdown bank wants to achieve through: 30% Microfinance (small loans), 25% Affordable housing & micro mortgages, 20% MSME loans (small businesses) and 25% Other loans (vehicle, gold, agriculture, etc.)
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According to Bank’s Chief Financial Officer (CFO), Sadananda Kamath, If RBI approves the application and allows Ujjivan SFB to become a universal bank, the bank will need to upgrade its technology and systems to handle more services and a bigger customer base. This will cost around ₹500 crore.
- ₹500 crore will be spend in IT Infrastructure, Cybersecurity, Digital Banking Platforms, Backend Systems like automation tools, and data management systems. Ujjivan needs to upgrade its entire tech ecosystem.
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Bank will offer new services like
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Credit/debit cards
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Foreign exchange (forex)
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Bank guarantees, etc.
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Ujjivan wants to grow big, become a full-service bank, and diversify its customers and loan types — while keeping its roots in serving the underserved. Approval from RBI will be key to unlocking this next phase. Bank wants to serve not just low-income customers, but also the emerging middle class.
Also read: AU Small Finance Bank Set to Grow Bigger with RBI’s Universal Bank Approval
