In its communication dated 13 April 2026, the RBI acknowledged the bank’s progress in diversifying its loan portfolio but noted that further improvement is required. The regulator has advised the bank to reapply once it demonstrates a more diversified loan mix.

The development delays Ujjivan’s plans to transition into a universal bank, a move that would have allowed it to expand its product offerings and scale operations beyond the small finance bank framework.

Ujjivan Small Finance Bank is a Scheduled Commercial Bank serving ~99.6 lakh customers through 777 branches across 339 districts in 26 states and Union Territories, supported by robust digital channels. The bank offers a diversified portfolio spanning across affordable housing, MSME, agri, vehicle, gold, micro-mortgage, FIG, and microfinance (group and individual) loans. As of 31 December 2025, Ujjivan's gross loan book stood at Rs 37,057 crore, with deposits of Rs 42,223 crore and a net worth of Rs 6,519 crore.

On a standalone basis, the bank's net profit surged 70.98% to Rs 185.72 crore on 16.12% increase in total income to Rs 2,047.40 crore in Q3 December 2025 over Q3 December 2024.