Utkarsh Small Finance Bank Limited has informed the Exchange regarding 'Sale of NPA and writing off loans to ARC'.
UTKARSHBNK · price
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Utkarsh Small Finance Bank has approved the sale of Non-Performing Assets (NPAs) and written-off loans to an Asset Reconstruction Company via a bilateral transaction. The total principal outstanding on these loans as on September 30, 2025 was ₹24 crore, against which the bank carried a 100% provision. The sale was concluded for a cash consideration of ₹11.40 crore. The decision was taken by the bank's authorised Management Committee on September 30, 2025.
Since the bank had already fully provisioned (100%) for these loans, the ₹11.40 crore recovery is a positive event — it boosts cash flow and cleans up the balance sheet without any meaningful hit to profits. For shareholders, this signals proactive NPA management and improved asset quality, though the recovery is at a steep discount (~47.5% of principal).