Utkarsh Small Finance Bank Limited has informed the Exchange regarding 'Machine Readable Form/Legible copy of Unaudited Financial Results for quarter ended June 30, 2025'.
UTKARSHBNK · price
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Awaiting price reaction for this filing.
Utkarsh Small Finance Bank reported its Q1 FY26 results showing a net loss of approximately ₹239.48 crore, compared to a profit of ₹2.97 crore in the same quarter last year. Total income declined to ₹1,018.65 crore from ₹1,070.57 crore year-on-year. The swing to a loss was driven by very high provisions and contingencies of ₹410.51 crore, compared to just ₹23.70 crore in Q1 FY25. Despite the loss, asset quality improved sharply, with Gross NPA falling to 2.19% from 4.84% a year ago, and Capital Adequacy Ratio remained healthy at 19.64%. The auditors (Deloitte Haskins & Sells and Kirtane & Pandit LLP) issued an unmodified limited review report. The bank also noted the pending amalgamation with its holding company, Utkarsh CoreInvest Limited, with the appointed date set as April 1, 2025.
Negative for shareholders in the short term — the steep quarterly loss signals heavy provisioning pressure even as asset quality improves. Investors should watch whether the elevated provisions continue in coming quarters and track progress of the proposed holding company merger, which could affect capital structure.