Ujjivan Financial Services

The company began as a microfinance institution (MFI) in Bengaluru, primarily offering loans to women. A significant milestone was surviving the 2010 microfinance crisis that affected many institutions in India. In October 2015, Ujjivan Financial Services received in-principle approval from the Reserve Bank of India (RBI) to establish a small finance bank. This led to the creation of its subsidiary, Ujjivan Small Finance Bank, which commenced operations on February 1, 2017. The transition allowed the entity to accept deposits and offer a broader range of banking products. Ujjivan Financial Services held a majority stake in the bank and conducted a successful IPO in May 2016. Following this, Ujjivan Small Finance Bank also went public with its own IPO in December 2019, which was oversubscribed 165 times.

The business model focuses on serving the unserved and underserved segments of the Indian population, including the economically active poor and micro and small enterprises. Revenue is primarily generated through interest income from its lending portfolio, which includes micro-group loans, individual loans, affordable housing loans, and MSME financing. It also earns fee-based income from transaction fees and the distribution of third-party products like insurance. The bank operates through a wide network of branches, many strategically located in semi-urban and rural areas, and is increasingly investing in digital channels like mobile and internet banking to improve efficiency and accessibility. In May 2024, Ujjivan Financial Services completed a reverse merger with Ujjivan Small Finance Bank to streamline its structure, with shareholders of the former receiving shares in the latter.