Utkarsh Small Finance Bank Limited has informed the Exchange regarding a press release dated August 02, 2025, titled "Press release for Un- audited Financial Result for quarter ended June 30, 2025.".
UTKARSHBNK · price
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Awaiting price reaction for this filing.
Utkarsh Small Finance Bank reported weak Q1 FY26 results with a net loss of ₹239 crore, compared to a profit of ₹137 crore in the same quarter last year. Pre-provision operating profit fell sharply to ₹92 crore from ₹311 crore YoY. The loan portfolio grew modestly by 2.3% YoY to ₹19,224 crore, as the bank deliberately slowed unsecured microfinance (JLG) lending. Deposits, however, grew a healthy 18.3% YoY to ₹21,489 crore, led by retail term deposits up 33.7% YoY. Asset quality deteriorated significantly, with gross NPAs rising to 11.42% (from 2.78% a year ago) and net NPAs at 5.00%. On the positive side, the share of secured loans in the book rose to 45% from 35% YoY, and capital position remains comfortable with CRAR at 19.64%.
Near-term sentiment is likely negative due to the quarterly net loss and sharp rise in NPAs, which reflects stress in the microfinance segment. However, the deliberate strategic shift toward secured lending, strong deposit growth, and adequate capital buffer may support a more positive long-term outlook for shareholders.