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Utkarsh Small Finance Bank Results: Latest Quarterly Results & Analysis

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Utkarsh Small Finance Bank Ltd. 14 Nov 2025 18:33 PM
Result PDF

Q2FY26 Quarterly Result Announced for Utkarsh Small Finance Bank Ltd.

Utkarsh Small Finance Bank announced Q2FY26 results

  • Deposits grew by 10.0% YoY to Rs 21,447 crore as on September 30, 2025, led by growth in retail term deposits.
  • Bank’s retail term deposits grew by 28.8% YoY to Rs 12,257 crore & CASA deposits grew by 17.4% YoY to Rs 4,482 crore as on September 30, 2025.
  • CASA deposits ratio increased to 20.9% as on September 30, 2025 from 19.6% as on September 30, 2024.
  • Bank’s CD ratio improved to 78.8% as on September 30, 2025 vs. 93.0% as on September 30, 2024.
  • Bank’s loan Portfolio contracted by 2.3% YoY to Rs 18,655 crore as on September 30, 2025.
  • Gross NPAs were 12.4% as on September 30, 2025 vs. 11.4% as on June 30, 2025 (3.9% as on September 30, 2024).
  • Net NPAs were 5.0% as on September 30, 2025 vs. 5.0% as on June 30, 2025 (0.9% as on September 30, 2024).
  • Bank’s pre-provision operating profit was at Rs 88 crore in H1FY26 vs Rs 588 crore in H1FY25.
  • During H1FY26, the Bank reported net loss of Rs 588 crore vs. PAT of Rs 189 crore in H1FY25.
  • Bank’s pre-provision operating loss was at Rs 3 crore in Q2FY26 vs preprovision operating profit of Rs 276 crore in Q2FY25.
  • During Q2FY26, the Bank reported net loss of Rs 348 crore vs. PAT of Rs 51 crore in Q2FY25 (Loss of Rs 239 crore in Q1FY26).

Govind Singh, MD & CEO, Utkarsh Small Finance Bank, said: “Q2FY26 marked a deliberate shift in the Bank’s growth architecture, rather than chasing quantity, we leaned into quality – prioritizing secured lending, recalibrating risk, and tightening execution. This quarter was about building resilience. Secured loans now comprise 47% of our portfolio as of September 30, 2025, up from 38% a year ago. This shift reflects a strategic pivot toward more stable asset classes. Consequently, our non-JLG loan portfolio sustained strong momentum, growing by 30% YoY & 4% QoQ. Healthy business growth driven by yield optimization efforts in secured products i.e. disbursement yields rising in housing & MSME loans by 40–100 bps compared to Q2FY25. On the liabilities side, our deposit base expanded by 10% YoY to Rs 21,447 crore as on September 30, 2025, led by retail term deposits. As the newly launched branches build maturity and traction, we are working towards margin improvement and overall business scalability in the coming quarters. In the unsecured microbanking segment, we’ve adopted a more cautious stance in response to recent stress indicators. Tighter credit norms and underwriting have moderated originations, resulting in contraction of JLG loan book during the quarter, which has impacted short-term interest income but is aligned with our long-term asset quality goals. Additionally, we continue to split larger micro-banking branches to improve oversight and control. We are also working on back-to-basics programs to train new frontline staff on core processes such as centre meetings and customer onboarding, ensuring a more robust and consistent execution framework. The Bank has expanded our collection workforce (to ~1,200 as of Sep-25). The Bank has already embarked on its Utkarsh 2.0 Technology Transformation Project, with several sub-projects already live and yielding benefits. FY26 remains a year of recalibration. We are focused on operational agility, prudent growth, and margin discipline, with an eye toward building momentum into FY27 and FY28. While the operating environment presents challenges, we are positioning the franchise to navigate them with resilience and adaptability.”

Result PDF

Result PDF

Utkarsh Small Finance Bank announced Q1FY26 results

  • Deposits grew by 18.3% YoY to Rs 21,489 crore as on June 30, 2025, led by growth in retail term deposits. The Bank continues to focus on building granular liabilities franchise, Bank’s retail term deposits grew by 33.7% YoY to Rs 11,675 crore & CASA deposits grew by 22.5% YoY to Rs 4,229 crore as on June 30, 2025. CASA deposits ratio increased to 19.7% as on June 30, 2025 from 19.0% as on June 30, 2024. Bank’s CD ratio improved to 83.4% as on June 30, 2025 vs 92.7% as on June 30, 2024.
  • Bank’s loan Portfolio grew by 2.3% YoY to Rs 19,224 crore as on June 30, 2025. The share of secured loans in overall portfolio increased to 45% as on June 30, 2025 from 35% as on June 30, 2024.
  • Gross NPAs were 11.42% as on June 30, 2025 vs 9.43% as on March 31, 2025 (2.78% as on June 30, 2024). Net NPAs were 5.00% as on June 30, 2025 vs 4.84% as on March 31, 2025 (0.26% as on June 30, 2024).
  • Comfortable capitalisation with CRAR at 19.64% and Tier 1 capital at 16.71% as on June 30, 2025.
  • Bank’s pre-provision operating profit (PPoP) was at Rs 92 crore in Q1FY26 vs Rs 311 crore in Q1FY25. During Q1FY26, the Bank reported net loss of Rs 239 crore vs PAT of Rs 137 crore in Q1FY25.

Govind Singh, MD & CEO, Utkarsh Small Finance Bank said: “During Q1FY26, the Bank continued its strategic pivot towards secured lending, amid difficult operating environment. Our non-JLG loan portfolio sustained strong momentum, growing 39% YoY. Consequently, the share of secured loans within the overall book rose to 45% as of June 30, 2025 – up from 35% as of June 30, 2024 – underscoring our focused efforts toward portfolio de-risking and improving asset quality. Healthy business growth driven by Yield optimization efforts in secured products i.e. disbursement yields rising in housing & MSME loans by 40–150 bps compared to Q1FY25. We have also adopted a prudent stance on new sourcing in the unsecured micro-banking segment due to recent stress indicators. This measured approach has impacted short-term interest income but is aligned with our long-term asset quality goals. The JLG loan portfolio contracted during the quarter, largely owing to tightened guard-rail norms which limited on-ground credit flow, though, there is reduction in microfinance borrower leverage levels. On the deposits front, in a declining interest rate scenario, our deposit base expanded 18.3% YoY to Rs 21,489 crore as on June 30, 2025, primarily fueled by strong momentum in retail term deposits. As the newly launched branches build maturity and traction, we are working towards margin improvement and overall business scalability in the coming quarters."

Result PDF

Utkarsh Small Finance Bank announced Q4FY25 & FY25 results

Q4FY25 & FY25 Financial Highlights:

  • Deposits grew by 23.4% YoY to Rs 21,566 crore as on March 31, 2025, led by growth in retail term deposits. The Bank continues to focus on building granular liabilities franchise, Bank’s retail term deposits grew by 33.5% YoY to Rs 10,635 crore1 & CASA deposits grew by 31.2% YoY to Rs 4,699 crore as on March 31, 2025. CASA deposits ratio increased to 21.8% as on March 31, 2025, from 20.5% as on March 31, 2024. Bank’s CD ratio improved to 86.8% as on March 31, 2025, vs 93.7% as on March 31, 2024.
  • The bank’s loan portfolio grew by 7.5% YoY to Rs 19,666 crore as on March 31, 2025. The share of secured loans in overall portfolio increased to 43% as on March 31, 2025 from 34% as on March 31, 2024.
  • Gross NPAs were 9.43% as on March 31, 2025 vs 6.17% as on December 31, 2024 (2.51% as on March 31, 2024). Net NPAs were 4.84% as on March 31, 2025, vs 2.50% as on December 31, 2024 (0.03% as on March 31, 2024).
  • During the year/quarter, pursuant to the approval from the Reserve Bank of India (RBI), the Bank fully utilised the floating asset provision as per relevant RBI regulations. Consequently, the provision for NPA ("Provisions and Contingencies") has been adjusted by Rs 148.62 crore and Rs 189.96 crore for the year and quarter ended March 31, 2025, respectively.
  • Comfortable capitalisation with CRAR at 20.93% and Tier 1 capital at 17.88% as on March 31, 2025.
  • Bank’s pre-provision operating profit (PPoP) increased by 1% YoY to Rs 1,007 crore in FY25 vs Rs 997 crore in FY24.

Other Highlights:

  • Gross Loan portfolio grew by 7.5% YoY to Rs 19,666 crore.
  • Deposits grew by 23.4% YoY to Rs 21,566 crore, led by Retail Term Deposits (RTD) growth of 33.5% YoY.
  • Presence across 27 States & UTs, through a network of 1,092 branches.
  • Operating profit (pre-provisions) of Rs 1,007 crore in FY25, increased by 1% vs Rs 997 crore in FY24.
  • Profit after tax of Rs 24 crore in FY25 vs Rs 498 crore in FY24.

Govind Singh, MD & CEO, Utkarsh Small Finance Bank, said: “During FY25, we have seen good traction in our non-JLG loan portfolio, which grew by 45%, the share of secured loans in our portfolio is also consistently increasing and reached to 43% as on Mar-25 vs 34% as on Mar-24. Along with healthy business growth, we are optimising our disbursement yields in secured lending products, i.e. housing & MSME loan products, disbursement yield increased by 80-180 bps over the same quarter last year. Our JLG loan portfolio declined in FY25 on account of the difficult operating environment following the implementation of guard rail norms, which restricted credit supply on the ground, and accordingly, our focus shifted towards collections. Nevertheless, stress has peaked out in the JLG loan segment, and we saw improvement in JLG disbursements as well as X-bucket collection efficiency towards the end of FY25. We expect this momentum to continue in FY26 as there is a decline in the leverage level of underlying borrowers in the microfinance segment, and guardrail norms are ensuring tighter control on the overall leverage level of microfinance borrowers. Our deposits have grown by a healthy pace of 23% YoY, deposits growth was led by retail term deposits growth. We are consistently expanding our franchise, and opened >200 new branches during FY25, our total branch count exceeded 1,000 branches as on March 31, 2025.

Result PDF

Utkarsh Small Finance Bank announced Q2FY25 & H1FY25 results

  • Gross Loan portfolio grew by 28.3% YoY to Rs 19,101 crore.
  • Deposits grew by 39.6% YoY to Rs 19,496 crore, led by Retail Term Deposits (RTD) growth of 47.6% YoY1
  • Gross NPAs & Net NPAs were 3.88% and 0.89%, respectively, as on Sep 30, 2024
  • Operating profit (pre-provisions) of Rs 588 crore in H1FY25 (YoY growth 28%) and Rs 276 crore in Q2FY25 (YoY growth 16%). Profit after tax Rs 189 crore in H1FY25 and Rs 51 crore in Q2FY25.
  • Return on Assets and Return on Equity stood at 1.5% and 12.3% respectively during H1FY25 and 0.8% and 6.6% respectively during Q2FY25.

Speaking on the results, Govind Singh, MD & CEO of the bank, said, “Q2, FY25 has been a challenging quarter for microfinance sector wherein collection efficiency and disbursements, both, were significantly impacted on account stress which started from heatwave & operating limitations during general elections in Q1, FY25 to higher borrower level leverage and credit supply tightening for underlying micro-banking borrowers on account implementation of MFIN guard rail norms and general slowdown in disbursement by the micro finance sector. We continue to work on strengthening our collection efforts further to improve collection efficiency. On the positive side, we continue to witness healthy growth in non-microbanking loan portfolio and consistent increase in share of secured loan portfolio. We have also been able to optimize our disbursements yields in secured lending by 50-80 bps for housing and MSME portfolio. Our deposits have also grown by a healthy pace of 40% YoY, deposits growth was led by retail term deposits growth. We are expanding our franchise, and opened 79 new branches during H1FY25 and 51 in Q2FY25, and have a total branch network of 967 branches, spread across 26 states & UTs of the country, as on September 30, 2024”.

Result PDF

Utkarsh Small Finance Bank announced Q1FY25 results:

  • Gross Loan portfolio grew by 30.6% YoY to Rs 18,798 crore
  • Deposits grew by 30% YoY to Rs 18,163 crore, led by Retail Term Deposits (RTD) growth of 48% YoY
  • Gross NPAs & Net NPAs were 2.78% and 0.26%, respectively, as on June 30, 2024
  • Highest ever quarterly operating profit (pre-provisions) of Rs 311 crore in Q1FY25. Profit after tax increased by 27.8% YoY to Rs 137 crore in Q1FY25
  • Return on Assets and Return on Equity stood at a healthy 2.3% and 18.1% respectively, during Q1FY25

Speaking on the results,Govind Singh, MD and CEO, Utkarsh Small Finance Bank said, “Our business is growing at healthy pace with gross loan portfolio growth of 31% YoY and deposits growth of 30% YoY as on June 30, 2024. We continue to work towards improving the granularity of deposits profile and diversification of loan portfolio. Our deposit growth was led by retail term deposits, and in loan book we are increasing share of secured loans consistently. We are expanding our franchise, and opened 28 new branches during Q1FY25, and have a total branch network of 916 branches, spread across 26 states & UTs of the country, as on June 30, 2024.

Result PDF

Utkarsh Small Finance Bank announced Q4FY24 & FY24 results:

Financial Highlights:

  • Gross Loan portfolio grew by 31.1% YoY to Rs 18,299 crore.
  • Deposits grew by 27.4% YoY to Rs 17,473 crore, led by Retail Term Deposits (RTD) growth of 43% YoY
  • Gross NPAs declined to 2.51% as on March 31, 2024 from 3.04% as on December 31, 2023; Net NPAs declined to 0.03% as on March 31, 2024 from 0.39% as on March 31, 2023.
  • Highest ever annual operating profit (pre-provisions) of Rs 997 crore and profit after tax of Rs 498 crore in FY24 (YoY growth of 23%); profit after tax during Q4, FY24 stood at Rs 160 crore.
  • Return on Assets and Return on Equity stood at a healthy 2.4% and 19.5% respectively, during FY24.

Speaking on the results, Govind Singh, MD and CEO, Utkarsh Small Finance Bank said, “Our gross loan portfolio & deposits growth were strong in FY24, in line with our expectation, on the strength of our deep-rooted franchise & footprints and relevant product offerings. We continue to see good growth opportunities across our key products i.e. micro-banking, MSME, Housing and CV&CE loan portfolio. Deposit growth was led by retail term deposits. Our collection efficiency and asset quality witnessed healthy trend in Q4, FY24 leading to a decline in credit cost as well as reduction in net NPAs to negligible level of 0.03% as on March 31, 2024. We have registered highest ever annual operating profit (pre-provisions) of Rs 997 crore in FY24 and profit after tax of Rs 498 crore in FY24. We believe there are significant growth opportunities available in our core geographies given the growth potential and relatively low financial penetration. We will continue to strengthen our franchise & presence and explore significant growth potential through our relevant & suitable product offerings”, he added.

 

Result PDF

Utkarsh Small Finance Bank announced Q3FY24 results:

  • Gross Loan portfolio grew by 30.8% YoY to Rs 16,407 crore
  • Micro-banking loan portfolio grew by 15.6% YoY, crossed Rs 10,000 crore mark
  • Deposits grew by 17.6% YoY to Rs 15,111 crore; Retail Term Deposits (RTD) grew by 45.8% YoY to Rs 7,228 crore
  • Net NPAs at 0.19% as of December 31, 2023
  • Profit after tax increased by 24.1% YoY to Rs 116.06 crore in Q3FY24; PAT for 9MFY24 increased by 24.8% to Rs 337.97 crore in 9MFY24
  • Return on Assets and Return on Equity stood at a healthy 2.3% and 18.5%, respectively, during 9MFY24, and the Bank continues to invest in people, presence, products & processes/technology and building floating provision cover
  • Comfortable capitalisation with CRAR at 23.18%
  • Presence spread across 26 States & UTs through 880 banking outlets as of December 31, 2023

Speaking on the results, Govind Singh, MD and CEO, Utkarsh Small Finance Bank, said, “We continue to expand our franchise & footprints as well as continuously strengthening our products & channels. On the back of our expanding franchise and customer base, our loan portfolio grew at a healthy pace of 30.8% YoY to Rs 16,407 crore as of December 31, 2023. Our Micro-banking loan portfolio growth also picked up and grew by 15.6% YoY to Rs 10,054 crore as of December 31, 2023. Our deposits growth continued to be led by retail term deposits which grew by 45.8% and we continue to focus on broad-basing of our deposits profile and strengthening our digital presence as well. We believe there are significant growth opportunities available in our core geographies given the good growth potential and relatively low financial penetration. We will continue to strengthen our franchise & presence and explore significant growth potential through our relevant & suitable product offerings.

Despite the hardened interest rate environment, we have been able to improve our net interest margin (NIMs) in Q3FY24 and FY24 as well as keep our eyesight on cost metrics, resulting in YoY profit after tax growth of 24.1%. Our Return on Assets and Return on Equity remains consistent & stable at a healthy 2.3% and 18.5% respectively, during 9MFY24, even on increasing asset and capital base”, he added.

 

Result PDF

Utkarsh Small Finance Bank announced Q1FY24 results:

  • Loan portfolio grew by 31.4% YoY to Rs 14,394 crore
  • Deposits grew by 35.6% YoY to Rs 13,967 crore
  • Strong asset quality with net NPAs at 0.33% as on June 30, 2023
  • Profit after tax increased by 20% YoY to Rs 107.50 crore in Q1FY24
  • Return on assets and return on equity stood at a healthy 2.3% and 21.1% respectively, during Q1FY24, and the Bank continues to invest in people, presence, products & processes/technology
  • Bank expanded its footprints further by opening 21 banking outlets in Q1FY24, with a presence spread across 26 States & UTs through 851 banking outlets as on June 30, 2023

Speaking on the results, Govind Singh, MD, and CEO, Utkarsh Small Finance Bank said, “We are witnessing a healthy scaling up of our franchise towards microfinance & others retail loans i.e. MSME, housing and wheels segment as well as deposits build-up. We endeavor to be consistent in performance which leads us to focus on productivity and yield with granularity attached to it is the “Business-as-Usual” model for us. The Bank has raised equity capital of Rs 500 crore through IPO exercise which provides sufficient headroom for our growth plans. Our Return on Assets and Return on Equity stood at a healthy 2.3% and 21.1% respectively, during Q1FY24, and the Bank continues to invest in people, presence, products & processes/technology.

 

 

Result PDF

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