Utkarsh Small Finance Bank Limited has submitted to the Exchange, the financial results for the period ended Jun 30, 2025.
UTKARSHBNK · price
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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 (ended June 30, 2025), compared to a profit of Rs 137.40 crore in the same quarter last year. Total income fell to Rs 1,018.65 crore from Rs 1,070.57 crore YoY, while provisions and contingencies more than tripled to Rs 410.51 crore from Rs 125.04 crore. Asset quality deteriorated sharply, with gross NPAs jumping to Rs 2,196.22 crore (11.42% of advances) from Rs 475.63 crore (2.78%) a year ago, and net NPAs rising to Rs 89.71 crore (5.00%) from Rs 4.28 crore (0.26%). The bank returned a negative return on assets of (0.87%), and the Capital Adequacy Ratio slipped to 19.64% from 23.18% YoY. Separately, the board approved the appointment of Dr. Sourabh Ghosh as Head-Consumer Banking effective August 2, 2025. The joint statutory auditors (Deloitte Haskins & Sells and Kirtane & Pandit LLP) issued an unmodified limited review report.
The steep asset quality deterioration and consequent loss are significant negatives — shareholders should expect short-term pressure on the stock and further clarity on the NPA trajectory and provision coverage. However, the capital adequacy ratio remains comfortable above 19%, and the pending amalgamation with holding company Utkarsh CoreInvest Limited could bring structural benefits if approved.