Utkarsh Small Finance Bank Ltd(UTKARSHBNK)

NSE: UTKARSHBNKBSE: 543942

₹ 11.8-1.50%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 2,100 crWebsite: www.utkarsh.bankUpdated: 24 Oct 2026

About

Utkarsh Small Finance Bank is an Indian small finance bank that serves low- and middle-income households, micro-entrepreneurs, MSMEs, and institutional customers through JLG microfinance, MSME, housing, commercial vehicle, and wholesale loans alongside deposits and payments. As of Q2 FY27, its gross loan portfolio stood at ₹20,063 crore, with the bank actively shifting its mix toward secured lending. Retail banking contributed 77.4% of segment revenue in FY26.^[1][2]

Business segments

Retail banking accounted for 77.4% of segment revenue in FY26, a share down 8.2 percentage points over FY2024-FY2026.^[2]
Treasury accounted for 15.0% of segment revenue in FY26, up 6.7 percentage points over FY2024-FY2026.^[2]
Wholesale banking accounted for 7.6% of segment revenue in FY26, up 1.5 percentage points over FY2024-FY2026.^[2]

Loan book and product mix

Gross loan portfolio reached ₹20,063 crore in Q2 FY27, up 7.5% YoY, with the JLG loan portfolio at ₹5,146 crore.^[3]
Gross loan portfolio declined 1.69% to ₹19,332.44 crore in FY26.^[1]
Secured loans made up 51% of the gross loan portfolio in FY26, up from 43% a year earlier.^[1]
Bihar, Jharkhand and UP accounted for 48% of the gross loan portfolio in FY26, down from 54% in FY25.^[1][4]
Micro banking (JLG + MBBL) made up ~38% of total AUM as of March 2026: JLG ₹5,386 crore, MBBL ₹2,022 crore, over 1.9 million customers across 184 districts.^[1]
MBBL grew 147% YoY and 11% QoQ to ₹2,246 crore in Q1 FY27, over 30% of the Micro Banking portfolio.^[5]
MSME loans were ₹4,275 crore (up 24% YoY) in Q3 FY26; housing loans ₹990 crore (~5%) and CV/CE AUM ₹1,090 crore (~6%) as of March 2026.^[6]

Deposits and liability franchise

Deposits rose 0.41% to ₹21,653.98 crore in FY26; CASA ratio was 24.0%.^[1]
Bulk term deposits fell to 17.3% of deposits in FY26 from 28.9% a year earlier.^[1]
CASA ratio was 22% in Q1 FY27, with CASA+RTD at 83%, up from 74% a year earlier.^[5]
The bank processed over 20 crore UPI transactions in FY26 and mobilised ₹691 crore in fixed deposits via fintech partnerships and its website.^[1]

Asset quality and capital

GNPA was 7.7% and NNPA 3.3% in FY26, vs 9.4% and 4.8% a year earlier.^[1]
GNPA fell to 5.9% and NNPA to 2.8% in Q1 FY27, after GNPA peaked at 12.4% in Q2 FY26.^[5]
PCR stood at 54.6% in Q1 FY27, compared with 59.3% in Q4 FY26.^[5]
Credit cost fell to 2.3% in Q1 FY27 from 5.3% in Q4 FY26 and 8.5% in Q1 FY26, aided by CGFMU guarantee coverage.^[5]
CGFMU guarantee covered ~80% of the microfinance portfolio as of Q1 FY27, giving ~₹75 crore P&L mitigation in the quarter.^[5]
Net fresh NPA slippages fell to ~₹125 crore in Q1 FY27 from ~₹170 crore in Q4 FY26 and ~₹400 crore in Q1 FY26.^[5]
CRAR was 17.7% in FY26 vs 20.9% a year earlier; CRAR 17.44% and Tier-1 15.13% in Q1 FY27.^[1][5]

Key operating metrics

NIM was 6.1% in Q1 FY27, up from 5.1% in Q3 FY26 and 5.5% in Q4 FY26.^[5]
Cost of funds declined to 7.7% in Q1 FY27, down ~40 bps YoY and ~15 bps QoQ.^[5]
Cost-to-income was 97.0% in FY26 vs 61.6% in FY25, and 88.2% in Q1 FY27.^[1][5]
RoAA was -4.1% and RoAE -42.1% in FY26.^[1]

Customers and distribution

The bank serves low- and middle-income households, women entrepreneurs, small and marginal farmers, MSMEs, corporates and institutional customers.^[1]
Savings account base exceeded 3.6 million customers as of March 2026, with 1 lakh+ MSMEs and local businesses served through current accounts.^[1]
The bank opened 204 new branches in FY25, focusing on the top 100 deposit centres.^[4]
5.87 lakh customers acquired digitally and 30.59 lakh onboarded digitally to March 2026; 13.49 lakh debit cards in force.^[1]

Disbursements

Total disbursements in Q2 FY27 were ₹3,525 crore, up 54.9% YoY; JLG disbursements were ₹923 crore, down 1.3% YoY.^[3]
Total disbursements in Q1 FY27 were ₹3,370 crore, up 49% YoY, with non-JLG disbursements up 93% YoY.^[5]

Recent developments

FY26 net loss was ₹1,151 crore vs a profit of ₹24 crore in FY25; management called FY26 a year of consolidation.^[1]
Microfinance guardrails, including a three-lender rule, took effect from April 1, 2025.^[4]
Stressed JLG and wheels loans were sold to an ARC in Q1 FY27 (₹365 crore of ARC sale in NPA movement).^[5]
A second motion petition for amalgamating holding company UCL into the bank was filed with NCLT on April 5, 2026; still pending.^[7]
The bank plans to raise ₹500 crore in Tier-2 NCDs in FY27, adding ~250 bps to CRAR, while prepaying ₹195 crore of high-cost debt.^[5]
Long-term rating A (Negative) reaffirmed by ICRA and CARE; CD programme rated A1+ by ICRA, as of FY26.^[1]
A new Finacle core banking system was described as about to launch as of Q1 FY27.^[5]

Market Cap

₹2,100 Cr

High / Low

₹22 / 10

Stock P/E

-2.3

Price / Book

0.8

Book Value

₹6

EPS

₹-6.5

No. of Shares

177.95 Cr

ROE

-40.0%

Sales

₹3,379 Cr

Net Profit

₹-1,151 Cr

Promoter holding

42.7%

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Utkarsh Small Finance Bank Ltd(UTKARSHBNK)

About

Business segments

Loan book and product mix

Deposits and liability franchise

Asset quality and capital

Key operating metrics

Customers and distribution

Disbursements

Recent developments

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