Utkarsh Small Finance Bank Limited has informed the Exchange about un-audited/ Provisional business update for quarter and year ended March 31, 2026
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Utkarsh Small Finance Bank reported strong Q4 FY26 disbursements of ₹4,207 crore, up 30.1% year-on-year and 46.1% quarter-on-quarter, driven by a 51.4% jump in non-JLG (joint liability group) loans. Gross loan portfolio stood at ₹19,333 crore, down 1.7% YoY due to a strategic 37.1% YoY reduction in the JLG book, while non-JLG loans grew 29.5% YoY to ₹13,544 crore. The secured-to-unsecured mix improved to 51:49 from 43:57, and the portfolio has shifted towards 70% non-JLG and 62% non-micro-banking, reflecting a deliberate diversification away from microfinance. Deposits were flat YoY at ₹21,654 crore, but CASA improved to 24.0% (from 21.8%) and CASA plus retail term deposits ratio rose sharply to 82.7% from 71.1%, indicating a more stable, retail-focused liability base. Asset quality also strengthened, with collection efficiency at 99.7% and the SMA pool shrinking to 1.3% from 5.1% in Q1 FY26, while liquidity coverage ratio stood at a healthy 177%.
Positive for shareholders: strong disbursement growth, improving asset quality, higher CASA, and a more secured and diversified book reduce risk. The shift away from JLG microfinance may weigh on near-term loan growth but should support margins and long-term stability.