Utkarsh Small Finance Bank Limited has informed the Exchange the financial result for the period ended June 30, 2025.
UTKARSHBNK · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Utkarsh Small Finance Bank reported a sharp swing to a net loss of Rs 239.48 crore in Q1 FY26, compared to a profit of Rs 137.40 crore in the same quarter last year, driven by a massive spike in loan loss provisions of Rs 410.51 crore (vs Rs 125 crore in Q1 FY25). Total income fell about 5% year-on-year to Rs 1,018.65 crore from Rs 1,070.57 crore, while operating profit before provisions dropped to Rs 91.64 crore from Rs 311.28 crore. Asset quality deteriorated sharply, with Gross NPAs surging to Rs 2,196 crore (11.42% of advances) from Rs 476 crore (2.78%) a year ago, and Net NPAs at 5.00% versus 0.26% earlier. The Capital Adequacy Ratio stood at a healthy 19.64%, and the Board also approved the appointment of Dr. Sourabh Ghosh as Head-Consumer Banking.
Shareholders should brace for a negative market reaction given the steep quarterly loss, triple-digit jump in provisions, and the dramatic deterioration in asset quality — the bank is clearly in a clean-up phase. The merger scheme with holding company Utkarsh CoreInvest remains pending NCLT approval and could be a longer-term positive.