Ujjivan Small Finance Bank reported a 71% jump in third quarter net profit at Rs 186 crore as compared with Rs 109 crore in the year ago period, with the provisioning requirements for microfinance having begun to taper as the collection efficiency improved in the past three months.

The bank’s highest-ever quarterly net interest income at Rs 1,000 crore has also boosted the profitability, while the rise in the share of secured loans to 48% from 39% a year back has lent stability to its asset quality.

The lender set aside Rs 195 crore as provisions for the quarter, as against Rs 223 crore in the year ago period.

Its pre-provision operating profit stood at Rs 440 crore as against Rs 359 crore, reflecting a 23% year-on-year rise.

“India’s macroeconomic environment continues to remain conducive, with strong GDP growth at 8.2% for Q2 FY26 translating into a supportive environment for credit growth and improved asset quality,” managing director Sanjeev Nautiyal said.

Ujivan’s asset quality improved with the non-performing assets ratio falling to 2.38% at the end of December from 2.68% a year back. Net NPA stood at 0.57% against 0.56% in the same period.