Financial Performance Overview

Quarter Ended September 30, 2026 (Q2 FY27):

  • Net Loss: ₹70 crore, representing an 80% improvement from Q2 FY26 loss of ₹348 crore
  • Pre-provision operating profit: ₹85 crore, compared to pre-provision operating loss of ₹3 crore in Q2 FY26

Half Year Ended September 30, 2026 (H1 FY27):

  • Net Loss: ₹104 crore, compared to ₹588 crore in H1 FY26
  • Pre-provision operating profit: ₹149 crore, compared to ₹88 crore in H1 FY26

Business Growth Metrics

Disbursements Performance:

  • Total disbursements grew by 55.0% YoY in Q2 FY27
  • Micro Banking (MB) disbursements grew by 24.9% YoY
  • Non-Micro Banking disbursements grew by 87.2% YoY

Loan Portfolio:

  • Gross Loan Portfolio: ₹20,062 crore as of September 30, 2026, representing 7.5% YoY growth and 2.3% QoQ growth
  • Share of secured lending increased to 52% from 47% as of September 30, 2025
  • Credit to Deposit ratio: 80.9% as of September 30, 2026 vs. 75.5% as of September 30, 2025

Deposit Performance:

  • Total Deposits: ₹23,869 crore as of September 30, 2026, representing 6.6% YoY growth and 3.3% QoQ growth
  • Retail term deposits: ₹14,442 crore, growing 11.8% YoY
  • CASA deposits: ₹5,119 crore, growing 14.2% YoY
  • CASA ratio: 21.4% as of September 30, 2026 vs. 20.0% as of September 30, 2025
  • Share of institutional term deposits decreased to 18.1% from 22.2% YoY
  • CASA plus Retail TD ratio improved to 82% from 78% a year ago

Asset Quality Indicators

NPA Ratios:

  • Gross NPA: 5.9% as of September 30, 2026, improved by ~630 bps from 12.2% as of September 30, 2025
  • Net NPA: 2.7% as of September 30, 2026, improved from 4.9% as of September 30, 2025
  • Credit cost: Improved by ~630 bps YoY to 3.3% in Q2 FY27

Collection Efficiency:

  • JLG X-bucket collection efficiency remained strong at 99.6%
  • SMA pools declined during the quarter
  • Fresh NPA slippages (net of recoveries and upgradations) reduced to ~₹175 crore from ~₹415 crore in Q2 FY26

Margin and Profitability Metrics

Margin Performance:

  • Cost of Funds (CoF): 7.5% in Q2 FY27, improved by ~50 bps YoY
  • Net Interest Margin (NIM): 6.3% in Q2 FY27, expanded by ~120 bps YoY
  • Cost of Funds declined to 7.4% in H1 FY27

Capital Adequacy

Capital Ratios:

  • CRAR: 17.0% as of September 30, 2026, well above regulatory threshold of 15%
  • Tier 1 capital: 12.8% as of September 30, 2026
  • Raised ₹300 crore through NCDs in September 2026

Business Segments and Diversification

Portfolio Composition:

  • Micro-banking business loans (MBBL) portfolio grew 146% YoY
  • MBBL now accounts for over 35% of the micro-banking segment
  • Growth in MSME, Housing, BBG, Gold Loans, and other businesses strengthening portfolio diversification

Operational Presence

Branch Network:

  • Presence across 27 States & Union Territories
  • Network of 1,110 branches

Management Commentary

Mr. Govind Singh, MD & CEO, highlighted:

  • Disciplined underwriting and portfolio monitoring supporting disbursement growth
  • Focused field execution and targeted collection initiatives driving asset quality improvement
  • Structural de-risking of unsecured exposure and pivot towards secured, lower-risk portfolios
  • Deposit repricing initiatives supporting margin stability
  • Ongoing investments under Utkarsh 2.0 technology transformation project enabling greater automation, digital underwriting and 360-degree portfolio monitoring capabilities
  • Bank positioned to drive sustainable growth, improve profitability, and create long-term value for stakeholders

Additional Information

  • Advances for GNPA/NNPA calculation includes IBPC
  • Full financial results available on stock exchanges (www.nseindia.com & www.bseindia.com) and Bank's website (www.utkarsh.bank.in)
  • Bank headquartered at Varanasi, Uttar Pradesh
  • Commenced operations on January 23, 2017, pursuant to small finance banking license granted by RBI on November 25, 2016