Ujjivan Bank’s Next Move: A New Plan to Broaden Its Reach

Ujjivan Small Finance Bank has announced that the Reserve Bank of India (RBI) will require it to show a more varied loan portfolio before approving its shift from a small finance bank to a universal bank. The RBI’s feedback highlighted that while the bank has been working on diversifying its lending, there is still room for improvement. In response, Ujjivan said it will keep working on this goal and submit a fresh application once its portfolio looks more balanced. Moving to universal bank status would let Ujjivan offer a wider array of financial services and step beyond its current focus on underserved communities. The bank first applied for this change in February of last year, but the RBI’s criteria are strict.To qualify, a bank must have five years of good performance, at least 10 billion rupees in net worth, a diversified lending mix, adequate capital, recent profits, and low bad loans. As of December 2025, Ujjivan’s loan book reached about 370. 5 billion rupees, while deposits stood at roughly 422. 2 billion rupees. These figures give a snapshot of the bank’s scale, but they also show that more diversification is needed to meet RBI’s standards. The bank’s plan to reapply shows its commitment to growing responsibly and meeting regulatory expectations. It also signals a broader trend of small finance banks aiming to expand their services while staying true to their original mission.