Corporate Overview

Statutory Reports

Financial Statements

Disclaimer

“This Annual Report has been prepared in accordance with Applicable Laws, including applicable Securities and Exchange Board of India (SEBI) and Reserve Reserve Bank of India (RBI regulations and may contain certain forward-looking statements which reflect Bank’s current views and expectations based on available information. These are subject to risks, uncertainties and assumptions and actual outcomes may differ significantly from those anticipated. The Bank does not undertake any obligation to revise or update any such forward looking statements, whether as a result of new information, future events or otherwise. The Annual Report is intended for general informational purposes only and should not be construed as financial, investment, legal or other professional advice and readers are advised to refer to official regulatory filings and consult professional advisors before making any decisions.

Copyright in all materials, text, articles and information contained in this document (other than third party materials, text, articles and information) is the property of and may only be reproduced with permission of the Bank. All rights reserved. “

Annual Report 2024-2025

img Annual Report 2024-2025
Vehicle
Finance

Steering Success,
Enabling Mobility.

At Ujjivan, vehicle finance plays a critical role in enabling economic mobility for under-served customers. We offer two-wheeler and electric three-wheeler loans tailored to individuals with limited or informal credit histories, particularly in semi-urban and rural areas. Our approach combines alternative credit assessments, doorstep servicing and digital onboarding to ensure quick, seamless disbursals. With competitive interest rates and flexible repayment options, the vehicle finance portfolio supports income generation and access to essential mobility. This vertical remains a key part of our financial inclusion strategy and contributes to portfolio diversification and quality asset growth.

Our two-wheeler financing portfolio is anchored in speed, accessibility and affordability which are the key enablers for our target customer segments. Recognising that two-wheeler ownership is a significant milestone for many, we offer risk-based pricing with interest rates ranging from 17.5% to 23.5% Internal Rate of Return (IRR), ensuring broad affordability and financial inclusion.

To drive operational efficiency and customer convenience, we implemented a full-scale Loan Origination System (LOS), available on the Google Play Store. Deployed in record time, this end-to-end digital platform has streamlined the loan journey – from application to disbursement – enabling near-instant approvals and significantly reduced turnaround time. This technology-led approach has strengthened our delivery capabilities and improved the overall customer experience.

Vehicle Finance

₹ 436.2 Crores

Disbursements

73,543

Customer Base

Highlights of FY 2024-25

  • Around 45% of cases, now pass directly through the ‘Straight Through Processing’ (STP) format, minimising manual intervention and accelerating disbursals
  • Implemented a risk-based pricing model, offering competitive interest rates and maximum Loan-to-Value (LTV), ensuring fair pricing based on customer creditworthiness
  • Strengthened presence in Uttar Pradesh with new operations in Lucknow, Bulandshahr, Varanasi, Gorakhpur and Meerut, which are regions that are known for a high two-wheeler demand
  • Expanded into Salem, Tamil Nadu, tapping into a market with rising vehicle sales and financing potential
  • Introduced financing for mid-premium bikes (350cc-500cc), offering loans up to ₹ 5 Lakhs with Internal Rate of Return (IRR) ranging from 14.49% to 18.49%
  • Mid-premium biking, provided up to 85% LTV
  • Strengthened dealership collaborations to accelerate disbursals and enhance customer experience
  • We achieved a total disbursement of ₹ 118.4 Crores during the festive season which resulted in 13,873 financed units
  • Rolled out special festival schemes and exclusive financing offers, boosting customer acquisition
  • Leveraged branch networks, existing customer base and pre-qualified data to reduce dependence on traditional acquisition channels
  • Achieved 8% contribution from alternate channels like referral and Pre-qualified Leads, enhancing portfolio diversity
  • Introduced the ‘GST Surrogate-Based Trade Advance’, providing dealers with quick and easy access to smaller trade amounts, ensuring seamless liquidity and faster business growth

Opportunity Landscape

The two-wheeler industry in India continues to witness robust growth, driven by increasing urbanisation, rising disposable income and changing lifestyle preferences. Key industry trends shaping growth include:

  • Mid-Premium Segment Surge: The 350-500cc motorcycle category is experiencing remarkable expansion, fuelled by growing demand from young professionals, travel enthusiasts and Tier 1 and 2 city motorcycle riders
  • Festival Season Boom: The festive season continues to be a major driver of two-wheeler sales, with customers seeking new beginnings during festivals such as Durga Puja, Dussehra, Diwali and Chhath Puja
  • Digital Transformation: With increasing customer preference for digital lending solutions, financial institutions that offer seamless, paperless processes are gaining a competitive edge
  • Geographic Potential: High two-wheeler sales in regions like Uttar Pradesh and Tamil Nadu, present significant financing opportunities, making these key markets for expansion
Outlook

In FY 2025-26, Ujjivan aims to expand its two-wheeler financing footprint by strengthening OEM partnerships, increasing dealership tie-ups and venturing into new high-potential markets. We will continue to enhance digital capabilities through our Loan Origination System (LOS). Thus, ensuring faster approvals and a seamless customer experience. With a focus on alternate acquisition models and risk-based pricing, we are committed to making two-wheeler ownership more accessible and affordable. By driving operational efficiency and customer-centric solutions, we are poised for sustained growth in this segment.

Housing and Micro-mortgages
Gold Loan