Ujjivan Small Finance Bank Seeks Universal Banking License, Plans ₹2,000 Crore QIP
In parallel, Ujjivan is planning to raise ₹2,000 crore through a Qualified Institutional Placement (QIP) over the next 18–24 months.
Ujjivan Small Finance Bank is seeking to transition into a universal bank and has applied to the Reserve Bank of India (RBI) for the required license. The bank expects a decision from the RBI by December 2025, as reported by Mint.
In parallel, Ujjivan is planning to raise ₹2,000 crore through a Qualified Institutional Placement (QIP) over the next 18–24 months. According to Business Standard, this capital will support the bank’s ambitious growth targets, including expanding its loan book to ₹1 lakh crore by fiscal year 2030 and increasing its branch network from 752 to 1,150.
The move aligns with RBI’s 2024 guidelines for granting universal banking licenses, which require a minimum net worth of ₹1,000 crore, a profitable track record for the past two years, and at least five years of operations. As reported by Reuters, Ujjivan meets these eligibility criteria and is hopeful for regulatory approval.
If the license is granted, Ujjivan aims to diversify its offerings by expanding into mid-corporate lending and enhancing its deposit base. The bank plans to increase the share of current and savings accounts (CASA) deposits to 35%, according to Business Standard.
This initiative reflects Ujjivan’s strategic approach to strengthening its market position by combining regulatory progress with capital augmentation. With its focus on scaling operations and broadening financial services, Ujjivan is positioning itself to play a significant role in India’s evolving banking landscape.