New Delhi, April 13 -- Mumbai - The Reserve Bank of India, on Monday, returned Ujjivan Small Finance Bank's application to convert to a universal bank, citing a concentrated loan book. The central bank has advised the bank to reapply for the licence after diversifying its loan portfolio, the bank notified the exchanges late on Monday.

The small finance bank had, in February 2025, applied to the central bank for voluntary transition to a universal bank.

In a letter dated 13 April 2026, RBI took note of the bank's recent efforts towards diversification of its loan portfolio but said that there is scope for progress in this area, as per the bank notification. "Therefore, RBI has returned the above-mentioned application and advised the bank...