This Small Finance Bank Stock Rises 40% in 1 Year: Can the Secured Book Shift Hold?

This small finance bank stock has risen approximately 40% in one year. The share closed at Rs 63.99 on 17 September 2026 against Rs 45.75 on 17 September 2025, a verified close-to-close gain of 39.87%. That places the small finance bank stock among the stronger names on a screen of NSE small-cap stocks ranked by 1-year return, dated 17 September 2026.

The company is Ujjivan Small Finance Bank Ltd (NSE: UJJIVANSFB), a Bengaluru-based lender that began as a microfinance institution and runs 814 branches. The Ujjivan Small Finance Bank share price did not move in a straight line. It ran to a 52-week high of Rs 73.94 on 20 August 2026, then gave back close to 13% in under a month.

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How Much Has This Small Finance Bank Stock Returned Across Periods?

The verified 1-year return is 39.87%, from Rs 45.75 on 17 September 2025 to Rs 63.99 on 17 September 2026. Over five years the gain is nearly 210%, yet the past month has been negative for this small finance bank stock.

Period	Reference Close	Price on 17 Sep 2026	Return
1 Month (17 Aug 2026)	Rs 72.21	Rs 63.99	Down 11.38%
6 Months (17 Mar 2026)	Rs 51.26	Rs 63.99	Up 24.83%
1 Year (17 Sep 2025)	Rs 45.75	Rs 63.99	Up 39.87%
3 Years (15 Sep 2023)	Rs 49.30	Rs 63.99	Up 29.80%
5 Years (17 Sep 2021)	Rs 20.65	Rs 63.99	Up 209.88%

No bonus or split occurred in any window. The three-year gain of 29.80% lags the one-year figure because the share peaked near Rs 60 in late 2023, then fell through FY25 as microfinance delinquencies rose. Whoever bought this small finance bank stock in October 2023 has waited three years for a small gain.

Why Did This Small Finance Bank Stock Rise 40% in One Year?

Four dated events drove it: the microfinance quality inflection in the March 2026 quarter, record net interest income in January 2026, a Q1 FY27 profit that tripled on 23 July 2026, and a Rs 1 lakh crore loan book roadmap. Each one moved the small finance bank stock.

1. The Microfinance Cycle Turned in the March 2026 Quarter

Sector data showed the microfinance loan portfolio growing more than 3% sequentially in Q4 FY26, the first rise after seven quarters of contraction. Portfolio at risk in the 31 to 180 day bucket fell to 2% from 6.3%, and for small finance banks it dropped to 1.5% by June 2026. That is the root cause of the rerating in this small finance bank stock.

2. Q3 FY26 Results in January 2026: Record Net Interest Income

In the December 2025 quarter net interest income hit Rs 1,000 crore, its highest then, with net interest margin up 33 basis points to 8.23%. Net profit rose 70.8% to Rs 186 crore. The small finance bank stock moved from Rs 55.71 at end-December 2025 to an intraday Rs 68.00 in the week of 19 January 2026.

3. Q1 FY27 Results on 23 July 2026: Profit More Than Tripled

This was the biggest single trigger for the small finance bank stock. June 2026 quarter net profit was Rs 317 crore against Rs 103 crore a year earlier. Net interest income rose 38.6% to Rs 1,186 crore, pre-provision operating profit rose 52% to Rs 548 crore and net interest margin held at 8.5%.

Return on assets reached 2.2% and return on equity 18.2%. Gross NPA improved to 2.17%, provision coverage to 85%, and credit cost was Rs 127 crore. The share ran from Rs 64.88 to Rs 70.72 that week, the sharpest weekly move of the year for this small finance bank stock.

4. A Rs 1 Lakh Crore Loan Book Roadmap and Raised Guidance

On 8 September 2025 the bank set a target of a Rs 1 lakh crore gross loan book by FY30, secured lending at 65% to 70% and CASA at 35%. At the Q1 FY27 results it raised FY27 return on assets guidance to 1.8% to 2.0% and cut credit cost guidance to 0.9% to 1.0%. Those upgrades gave the small finance bank stock a second leg.

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What Do the Financials of This Small Finance Bank Stock Look Like?

Total income rose about 25% year on year in the June 2026 quarter while net profit more than tripled, because provisions fell sharply, not because growth accelerated. That is the signature of a credit cycle turning in a small finance bank stock.

Metric	Q1 FY27 (Jun 2026)	Q1 FY26 (Jun 2025)	Change
Total Income	Rs 2,025 Cr	Rs 1,619 Cr	Up 25.1%
Net Interest Income	Rs 1,186 Cr	Rs 856 Cr	Up 38.6%
Net Interest Margin	8.5%	7.7%	Up 80 bps
Pre-Provision Operating Profit	Rs 548 Cr	Rs 361 Cr	Up 52%
Net Profit	Rs 317 Cr	Rs 103 Cr	Up 206.7%
Gross NPA	2.17%	2.52%	Down 35 bps
Return on Equity	18.2%	6.7%	Up 1,150 bps

Gross loan book was Rs 42,903 crore, up 28.9%, on disbursements of Rs 9,252 crore. Deposits reached Rs 48,129 crore, up 24.6%, and CASA rose 37.8% to Rs 12,930 crore, a ratio of 26.9%. Capital adequacy behind this small finance bank stock was 20.36%, with Tier I at 19.16%.

The multi-year record of this small finance bank stock is less flattering. Profit peaked in FY24 and has not returned there since.

Financial Year	Total Income	Net Profit	EPS
FY23	Rs 4,165 Cr	Rs 1,100 Cr	Rs 5.63
FY24	Rs 5,677 Cr	Rs 1,281 Cr	Rs 6.54
FY25	Rs 6,354 Cr	Rs 726 Cr	Rs 3.75
FY26	Rs 6,931 Cr	Rs 693 Cr	Rs 3.57

FY26 net profit of Rs 693 crore sat below FY25 even as income rose. The recovery in this small finance bank stock shows only inside FY26, where quarterly profit ran Rs 103 crore, Rs 122 crore, Rs 186 crore and Rs 282 crore.

On trailing numbers the small finance bank stock trades at a PE near 13.94 against an industry PE of about 12.90, a price to book of 1.88 on book value of Rs 34.51, EPS of Rs 4.65 and return on equity of 13.47%.

Who Owns This Small Finance Bank Stock?

Domestic institutions have doubled their stake in this small finance bank stock in a year while foreign investors trimmed. DII holding rose from 16.83% in June 2025 to 33.45% in June 2026, while FII holding slipped from 19.56% to 16.81%.

Shareholder	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Promoters	0.00%	0.00%	0.00%	0.00%	0.00%
FIIs	19.56%	17.04%	15.45%	17.23%	16.81%
DIIs	16.83%	20.13%	28.68%	31.13%	33.45%
Public and Others	63.62%	62.82%	55.87%	51.64%	49.74%

Promoter holding is nil. After the holding company was amalgamated into the bank, the lender has no identified promoter, which is unusual for a small finance bank stock and removes the promoter pledge question entirely.

Key Risks in This Small Finance Bank Stock

The clearest risk is regulatory. On 13 April 2026 the Reserve Bank of India returned the bank's application to convert into a universal bank, citing scope for further progress on diversification. A universal licence eases the priority sector and branch rules that constrain any small finance bank stock, so the delay pushes that benefit out by years.

Microfinance concentration: Unsecured microfinance was still Rs 21,371 crore of the Rs 42,903 crore book in June 2026. FY25 net profit dropped from Rs 1,281 crore to Rs 726 crore almost entirely on microfinance provisions, the core risk in this small finance bank stock.

Margin compression: A net interest margin of 8.5% exists because microfinance yields are high. Secured lending was 50.4% of the book and management wants 56% by March 2027. Housing, gold, vehicle and MSME loans yield less, so margin must fall for this small finance bank stock as the mix improves.

Deposit cost: The CASA ratio slipped to 26.9% in June 2026 from 28.6% in March 2026 because term deposits grew faster. Until the 35% goal is closer, funding cost stays a live risk for this small finance bank stock.

Dilution: The board has approved raising up to Rs 2,000 crore through a qualified institutional placement over 18 to 24 months. Capital adequacy of 20.36% means it funds growth rather than repair, but fresh shares still dilute per share earnings in this small finance bank stock.

Liquidity and volatility: At roughly Rs 12,628 crore of market cap this is a small-cap share and behaves like one. It fell from Rs 73.94 on 20 August 2026 to Rs 63.43 on 17 September 2026, a drawdown near 14%. The bank pays no dividend, so every rupee of return from this small finance bank stock has to come from price.

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Ujjivan Small Finance Bank Share: Analyst View

Analyst opinion on the Ujjivan Small Finance Bank share turned positive after the March 2026 quarter. A domestic brokerage kept a buy rating on 14 May 2026, arguing the bank was entering a stronger structural growth phase as secured assets move to 56% of the book in FY27 from 49%.

That note expected net interest margin to settle in an 8.0% to 8.2% band through FY28 rather than and valued the Ujjivan Small Finance Bank share at about 1.4 times FY28 adjusted book value. Analysts tracking this small finance bank stock watch the secured shift, credit cost against guidance, and the universal bank application.

Ujjivan Small Finance Bank Share Price Target

The only verified Ujjivan Small Finance Bank share price target is Rs 78, set by that domestic brokerage on 14 May 2026 when the Ujjivan Small Finance Bank share price was near Rs 62.40. Against the Rs 63.99 close on 17 September 2026 it implies roughly 22% upside for the small finance bank stock.

No newer published target could be verified after the Q1 FY27 results, so the Rs 78 figure predates the July 2026 numbers. Any Ujjivan Small Finance Bank share price target is an estimate, not a commitment. On levels alone, Rs 73.94 is the resistance that matters and Rs 43.85 marks the base this rally began from.

Other Stocks to Track From the Same Return Screen

Beyond this small finance bank stock, a screen of NSE small-cap stocks ranked by 1-year return also includes related names such as Marksans Pharma with a 1-year return of 80.74%, Timex Group at 80.30% and Cyient DLM at 80.04%.

Among the names covered from that screen, MTAR Technologies returned 396.53% over one year. Readers can compare this small finance bank stock with the Nifty 50 benchmark and track each of these names on Univest before making any decision.

Conclusion

This small finance bank stock has delivered a verified 39.87% gain over one year on real numbers. Quarterly profit moved from Rs 103 crore to Rs 317 crore, gross NPA fell to 2.17% and the secured book crossed half the portfolio for the first time.

Against that, FY26 profit of Rs 693 crore is below FY24, the universal bank application has been sent back once, and margin must compress as the mix turns safer. Anyone new to this small finance bank stock may prefer staggered entries and a defined stop loss over chasing strength.

Frequently Asked Questions

Which small finance bank stock rose 40% in 1 year?

Ans. Ujjivan Small Finance Bank Ltd (NSE: UJJIVANSFB) is the small finance bank stock that gained a verified 39.87% between 17 September 2025 and 17 September 2026. It moved from Rs 45.75 to Rs 63.99, with no bonus or split.

Why did the Ujjivan Small Finance Bank share price rise?

Ans. The rise came from a microfinance credit cycle that turned in the March 2026 quarter, cutting provisions sharply. Q1 FY27 net profit tripled to Rs 317 crore from Rs 103 crore, net interest income rose 38.6% to Rs 1,186 crore, and the secured loan book crossed 50% of the portfolio.

What were the Q1 FY27 results of Ujjivan Small Finance Bank?

Ans. Net profit for the June 2026 quarter was Rs 317 crore, up 206.7% year on year, reported on 23 July 2026. Net interest income was Rs 1,186 crore, net interest margin 8.5%, return on assets 2.2%, gross NPA 2.17% and provision coverage 85%.

Did the RBI approve a universal bank licence for this lender?

Ans. No. The Reserve Bank of India returned the application on 13 April 2026, citing scope for further progress on diversification. The bank said it will resubmit in due course, leaving the licence a pending catalyst for this small finance bank stock.

What is the 52-week high and low of the Ujjivan Small Finance Bank share price?

Ans. The 52-week high is Rs 73.94, hit on 20 August 2026, and the low is Rs 43.85 from September 2025. It closed at Rs 63.99 on 17 September 2026, about 13% below that peak.

Is this small finance bank stock expensive at current levels?

Ans. It trades at a trailing PE of approximately 13.94 against an industry PE near 12.90, with a price to book of 1.88 on book value of Rs 34.51. That is a modest premium for a small finance bank stock, but trailing earnings include quarters of unusually low credit cost.

What is the Ujjivan Small Finance Bank share price target?

Ans. The only verified target is Rs 78, set by a domestic brokerage on 14 May 2026 with a buy rating. No newer published figure could be verified after the Q1 FY27 results. Targets for this small finance bank stock are estimates, not assured outcomes.

Who are the promoters of Ujjivan Small Finance Bank?

Ans. There are none. Promoter holding has been nil since the holding company was amalgamated into the bank, so the lender is professionally managed with no pledge. Domestic institutions held 33.45% in June 2026.