Shares of Ujjivan Small Finance Bank Limited fell 3.45% to Rs 58.22 on the NSE on Wednesday after Monday’s (13 April) disclosure that the Reserve Bank of India has returned its application to transition into a universal bank.

In an exchange filing, the bank said the RBI took note of its recent efforts towards loan portfolio diversification but was of the view that ‘there is scope for progress in this area.’ The regulator returned the application and advised the bank to reapply after demonstrating a more balanced loan book. No concerns relating to governance, compliance, or operational soundness were cited.

The Bengaluru-based small finance bank had originally submitted its application on 4 February 2025. Transitioning to a universal bank remains a stated long-term objective, aimed at broadening its business mix, raising the share of secured loans, gaining greater operational flexibility and accessing a wider customer base. Ujjivan told exchanges it will continue diversifying its portfolio and reapply in due course, in line with RBI’s guidance.

To qualify for a universal banking licence, small finance banks must meet several conditions, including listing on a recognised exchange, a minimum net worth of Rs 1,000 crore, compliance with capital adequacy norms, profits in the last two financial years and asset quality within prescribed thresholds.

Despite the regulatory setback, the firm has posted improving financials. Net profit for the quarter ended 31 December 2025 stood at Rs 185.72 crore, up sharply from Rs 108.62 crore in the same quarter a year earlier, with total income rising to Rs 2,047.40 crore from Rs 1,763.24 crore over the same period.

At 9:44 am on 15 April, shares were down by 3.45% at Rs 58.22 on the NSE. The stock had gained 46.92% over the past year and 15.23% over the past month, touching a 52-week high of Rs 68.00 in January 2026.

Feeling overwhelmed by the markets? Let Tradz by EquityPandit be your guide. Our user-friendly app simplifies complex data and provides actionable trading signals. Download the app today and trade with confidence!