Utkarsh Small Finance Bank Limited has informed the Exchange about Transcript of Earnings Call held on May 11, 2026.
UTKARSHBNK · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Utkarsh Small Finance Bank reported a net loss of INR188 crores in Q4 FY '26 driven by provisioning for legacy stress, though green shoots are emerging. Disbursements improved sharply — JLG grew 58% QoQ and non-JLG 41% QoQ — as collections normalized and fresh NPA slippages fell to ~INR170 crores from ~INR710 crores a year ago. The bank is aggressively de-risking: JLG exposure is down to ~28% of the loan book from ~88% in FY '20, while secured lending now comprises 51% of the gross loan book, up from 43% a year ago. The GNPA ratio improved to 7.7% with a 59.3% overall PCR. Management confirmed FY '28 targets of ~15% ROE and loan book growth of 25-30% with NIMs above 8%, while targeting net NPA below 1% and steady-state credit cost of 3% for FY '27 and 2-2.5% for FY '28. A reverse merger with holding company UCL is pending NCLT approval.
The bank is past peak stress with improving asset quality and disbursement momentum, but near-term profitability remains pressured by legacy provisioning. The FY '28 targets signal a strong recovery path, with capital adequacy at 17.7% providing sufficient buffer without immediate capital raise plans.