Ujjivan Small Finance Bank (SFB) has applied to the Reserve Bank of India (RBI) for a universal banking licence to enhance its offerings and strengthen its position in the sector. It becomes the second SFB, after AU SFB, to seek a universal banking transition under the voluntary route. 

Since commencing operations in 2017, the Bengaluru-based lender has expanded to 753 branches across 26 states and union territories, serving approximately 9.3 million customers. As of December 31, 2024, its gross loan book stands at Rs 304.66 billion, while deposits total Rs 344.94 billion. 

As per RBI guidelines, an SFB must have a minimum net worth of Rs 10 billion, scheduled bank status, and a track record of at least five years to qualify for conversion. It must also maintain a gross NPA ratio of 3% or lower and a net NPA ratio of 1% or lower over the past two financial years. Additionally, only listed SFBs that have been profitable for at least two consecutive years and meet capital adequacy norms are eligible. Preference is given to banks with a diversified loan portfolio. 

Meanwhile, Jana Small Finance Bank is also working towards meeting regulatory requirements for a universal banking transition, ensuring its NPA ratios remain within the prescribed limits. 

(Business Standard)