• Event Type: Q1 FY27 Earnings Conference Call hosted by ICICI Securities Limited
  • Date and Time: Monday, August 03, 2026 at 04:00 PM IST
  • Purpose: Discussion of Unaudited Financial Results for the quarter ended June 30, 2026
  • Management Participants:
  • Mr. Govind Singh – Managing Director and Chief Executive Officer
  • Mr. Sarjukumar Pravin Simaria – Executive Director
  • Mr. Amit Acharya – Chief Risk Officer
  • Mr. Virender Sharma – Head – Micro Banking
  • Mr. Sourabh Ghosh – Head – Consumer Banking
  • Mr. Abhay Kataria – Head Assets
  • Moderator: Mr. Renish Bhuva from ICICI Securities Limited
  • Availability: Transcript disclosed under Regulation 30 of SEBI Listing Regulations and available on bank's website www.utkarsh.bank.in

Financial Highlights & Business Updates

Business Performance:

  • Total disbursements grew 49% year-on-year in Q1 FY27
  • JLG disbursements grew 5% year-on-year
  • Non-JLG disbursements registered robust growth of 93% year-on-year

Asset Quality Improvements:

  • Gross NPA ratio stood at 5.9% as of June 2026, improving ~550 bps YoY and ~160 bps QoQ
  • X-bucket collection efficiency in JLG segment remained strong at 99.7% (up from 98.6% in Q1 FY26)
  • SMA pools within Micro Banking segment contracted to 1.2% from 1.3% in March 2026 and 5.1% in June 2025
  • Total fresh NPA slippages (net of recoveries and upgradations) reduced to ~INR125 crores vs ~INR170 crores previous quarter and ~INR400 crores year-ago quarter

Portfolio Diversification:

  • JLG portfolio represents 26% of gross loan book (28% including BC JLG exposure) vs 88% in March 2020
  • Secured lending increased to 51% of gross loan book from 45% a year ago
  • Micro Banking Business Loan (MBBL) portfolio grew 147% YoY and 11% sequentially, constituting more than 30% of Micro Banking portfolio

Segment-wise Portfolio Growth:

  • MSME portfolio expanded 12% YoY to INR4,482 crores
  • Housing loan grew 8% YoY to INR1,005 crores
  • Business Banking Group (BBG) portfolio recorded strong growth of 40% YoY
  • Commercial Vehicles & Construction Equipment segment focused on stronger risk profile assets

Deposits & Funding:

  • Total deposits grew 3% YoY
  • CASA deposits grew 15% YoY
  • Retail term deposits increased 15% YoY
  • CASA plus retail term deposit ratio improved to 83% vs 74% a year ago
  • CASA ratio strengthened to 22% as of June 2026
  • Cost of funds declined ~40 bps YoY and ~15 bps QoQ to 7.7% in Q1 FY27

Earnings & Provisions:

  • Net loss of INR34 crores, representing reduction of more than 80% both YoY and sequentially
  • Credit cost reduced to 2.3% vs 5.3% in Q4 FY26 and 8.5% in Q1 FY26
  • CGFMU scheme provided mitigation of ~INR75 crores in P&L impact

Capital & Liquidity:

  • Capital adequacy remained at 17.4%, well above regulatory thresholds
  • Surplus liquidity of ~INR3,200 crores
  • LCR of 216%
  • CD ratio stood at 83.8%
  • Planning to raise ~INR500 crores through Tier 2 NCDs in current year
  • Repaying INR195 crores tranche at 12.5% coupon in mid-August 2026 (saving ~INR20 crores)

Strategic Initiatives:

  • CGFMU coverage: ~60% of microfinance book (disbursements up to Q4 FY26) covered, increasing to ~80% including Q1 FY27 disbursements
  • Considering ARC sale of stressed JLG and wheels portfolio for balance sheet cleanup
  • Utkarsh 2.0 technology transformation project underway with new CBS launch imminent
  • Employee headcount rationalized by ~1,700 while driving productivity improvements
  • Specialized call center operationalized for overdue accounts
  • Collections workforce supporting JLG and MBBL businesses exceeds 1,200 personnel

NCLT Amalgamation Update:

  • NCLT hearing on July 23, 2026 noted responses from relevant authorities
  • Next hearing scheduled for August 6, 2026
  • Reverse merger expected to complete in next few months subject to NCLT proceedings

Guidance & Outlook:

  • Targeting loan book growth of 25% to 30%
  • Aiming for secured lending comprising ~55% of portfolio
  • Targeting NIM of around 8%
  • Targeting ROE of ~15% by FY28
  • Expecting 2-digit upwards ROE by exit of FY27
  • Credit cost guidance: 3% to 3.5% (conservative estimate)
  • JLG portfolio expected to remain around 25% over next 2-3 years
  • Micro Banking growth range: 15% to 20%

Additional Notes

  • Document includes full transcript of earnings conference call with analyst Q&A session
  • Multiple analysts participated including from Ageless Capital Finance, Spark PWM, SSJ Finance & Securities, PhillipCapital, Kotak Securities, and individual investors
  • Detailed operational and financial metrics provided during Q&A session