Dear Shareholders,

I am pleased to share that FY 2024-25 marked a milestone year in Ujjivan’s journey of persistent progress. This year reflected our firm conviction to deliver enduring value, as seen in our balanced performance across all key business areas. Disbursements reached an all-time high, driving substantial growth in our loan portfolio. As of March 2025, our gross loan book expanded to ₹ 32,122 Crores, with the secured loan book demonstrating an upward trajectory, reaching a share of 44%. We continued to strengthen our mass market positioning by serving over 95 Lakh customers through a network of 753 branches across 26 states and Union Territories. Our concerted efforts culminated in a Net Profit of ₹ 726 Crores, delivering a Return on Assets (RoA) and Return on Equity (RoE) of 1.6% and 12.4%, respectively. As we look ahead, we remain focused on strategically positioning Ujjivan for sustained success and unlocking new avenues for growth. In line with this vision, we submitted our application for a Universal Banking License to the Reserve Bank of India in February 2025, and now await decision.

Performance Demonstrates Sustained Progress

In FY 2024-25, we continued to sharpen our focus on quality-led growth across portfolios, driving momentum in secured loan expansion and diversification. Building on the strategic direction established last fiscal, we continued to record strong growth in our Affordable Housing segment, which remained a key driver for the year. The MSME vertical, recalibrated in FY 2023-24, also began to deliver meaningful results, by expanding its product suite to Working Capital, Supply Chain Finance and Non-Fund Based offerings while simultaneously growing its geographic footprint, and reaffirmed its potential as a scalable engine for future growth. FIG continued its growth journey reaching ₹ 2,785 Crores this FY 2024-25. Additionally, new product lines such as Agri Loans, Gold Loans, and Vehicle Loans gained significant traction, further deepening our product suite and enhancing our customer offerings.

On the deposit side, we reported total deposits of ₹ 37,630 Crores, marking a significant growth of 20% from ₹ 31,462 Crores as of March 31, 2024. CASA deposits grew to ₹ 9,619 Crores in March 2025 from ₹ 8,335 Crores in March 2024, clocking an increase of 15%, while the CASA ratio remained steady at 25.6%. This consistent growth in deposits demonstrates our continued success in fortifying the funding base through retail deposits and low-cost CASA accounts. Despite strong competition for deposits and persistent liquidity pressures across the banking system, the Bank remained committed to prudent and agile balance sheet management. We consistently maintained a stable Credit-to-Deposit (CD) ratio, which improved to around 85%, while our Liquidity Coverage Ratio (LCR) remained strong at 137.7% for FY 2024-25. Retail term deposits maintained strong momentum, growing 21% and outpacing bulk term deposits, demonstrating the increasing trust of our retail customer base.

Environment, Social and Governance (ESG)

Our approach to sustainability is anchored in a well-planned strategy designed to achieve meaningful and measurable goals. As we continue to scale responsibly, our ESG commitment is guided by a clear intention to generate long-term value while addressing the needs of under-served communities. We place a strong emphasis on empowering women, particularly in marginalised segments, recognising that this can transform families, strengthen communities, and help break the cycle of poverty. Our financial products and literacy programmes for women, such as Diksha Pro+, are driving financial inclusion and enhancing community resilience.

On the environmental front, we are making steady progress by installing solar panels at select locations, furthering our vision for sustainable infrastructure. At the same time, governance remains the cornerstone of our institutional ethos. We have established a robust framework of policies, a comprehensive code of conduct, and clear guidelines to embed ESG principles and responsible banking practices across the organisation.

Building Human Capital

Ujjivan is committed to comprehensive people development and organisational capability building, fostering a culture where every employee feels valued and supported. This people-centric approach has enabled us to consistently earn recognition from the Great Places to Work Institute, being certified for 15 consecutive years and ranked among the Top 25 BFSI companies for the third time in FY 2024-25. We have further elevated employee well-being by expanding health benefits and introducing holistic wellness programmes that go beyond convention such as Doctor on call, mental health program etc. We are also committed to supporting women in re-entering the workforce after extended career breaks through initiatives like Unpause. On the learning front, extensive training modules have enhanced all-round skills, resulting in a steady rise in average learning hours per employee. To support ongoing career growth and capability building, we continue to invest in world-class learning platforms such as LinkedIn Learning and the Harvard Business Publishing programme, driving continuous professional development. Together, these initiatives underscore our commitment to creating a workplace where growth is meaningful and employees are genuinely engaged in the organisation’s journey.

Enhancing Digital Offerings

Ujjivan remains dedicated to leveraging digital solutions to expand its reach and serve a wider array of customers. Over the past year, we enhanced our digital offerings, including Digital Fixed Deposits, Digital Savings Accounts, and Digital Current Accounts, incorporated with multi-layer API, that are built over Cloud, to provide customers with seamless banking experiences at their fingertips resulting in higher customer engagement and better experience. We launched a new business mobile app with more than 90 features, strengthening business net banking and extending our digital reach to semi-urban and rural customers.

We also rolled out Robotic Process Automation across 51 processes, equivalent to saving 7.08 Lakh man-hours in FY 2024-25. We also incorporated scorecards & business rule engines for faster underwriting, digital lending and credit decisioning. Our UPI Autopay solution empowers customers to easily manage recurring payments for EMIs, credit cards, subscriptions, investments, and utility bills. The credibility of our app has been widely recognised through prestigious awards, including the IBA Technology Conference 2024 (Best Digital Sales, Payments & Engagement - Special Mention) and the IBEX BFSI Technology Award (Outstanding Use of Emerging Technology for Enhanced Customer Service Experience).

In a rapidly evolving financial landscape, Ujjivan has embraced data-driven decision making through investments in operation and process automation, advanced analytics, robust data infrastructure and eco system integration. Multi-layer data mart is being created for storing and analysing more than 90 Lakh customers’ data for better risk analysis, upsell/cross sell and underwriting. Besides these investments we have also improved our data quality and risk management resulting in measurable gains in business growth and efficiency. Strengthening our analytics team and developing a comprehensive data lake has created a strong foundation for sharing insights across the organisation. Leveraging AI and machine learning, we enhanced operations and optimised customer engagement, ensuring our digital momentum continues to unlock new opportunities for growth.

Strengthening Portfolio Quality and Driving Diversification

Ujjivan adeptly navigated challenges within the Micro Banking segment, upholding one of the industry's highest standards for portfolio quality. Our strategic emphasis on asset diversification, particularly the growth of secured loans, yielded strong results. Secured loans now constitute 44% of our total portfolio, up from 30% last year, surpassing our FY 2025-26 target ahead of schedule. The secured book crossed ₹ 13,988 Crores, registering a 56% year-on-year increase and underscoring the success of our asset diversification strategy.

Our gross loan book grew by 8% year-on-year, supported by disbursements of ₹ 23,464 Crores. Asset quality remained a top priority, reflected in a steady Gross NPA ratio of 2.2% and a consistently low Net NPA of 0.5% as of March 31, 2025. Our dedicated collections team achieved a collection efficiency of approximately 99%, helping to maintain a credit cost of 2.45%. We continue to maintain a floating provision of ₹ 181 Crores, resulting in a Provision Coverage Ratio of 78%. For FY 2024-25, our Net Interest Margin (NIM) stood at 8.8%, reaffirming the strength of our financial position and strategic direction.

Governance & Risk Management

Compliance to laws and regulations is embedded in the Bank’s Mission statements and our aspiration to cater to the under-served and un-served segments underscores the commitment in meeting the expectations laid in the SFB licensing guidelines. The Bank provides differentiated offerings, in that, more emphasis is laid towards financial inclusion and targeted towards customers with little/no banking channels across all services. The Bank’s Risk Management Framework is robust and stands as a validation for resiliency, having been subject to various adverse business cycles over the years. Also, the Bank is well capitalised and operates over and above the Regulatory minimum. The Bank is also proactive in managing emerging risks such as cyber security, data privacy risks and climate risks. The Bank’s long term strategic plan is designed to ensure that business models are sustainable in the long run.

Outlook

As we look ahead to FY 2025-26, Ujjivan remains committed to pursuing strategies that support long-term growth. Our focus will remain on product diversification, with particular emphasis on increasing the share of secured loans within our portfolio while optimising yield too. We will continue to invest in technological advancements to further strengthen our digital capabilities. At the same time, we remain positive and optimistic about our application to RBI for our Universal Banking License, which has the potential to further expand our scope and horizon. Together, these efforts are set to drive sustainable change and unlock greater opportunities for all stakeholders.

Yours Truly,

Mr. Sanjeev Nautiyal

Managing Director & CEO