Utkarsh Small Finance Bank Limited – Investor Presentation Summary

Key Operational Highlights

  • Gross Loan Portfolio: ₹20,062 crore, showing 7.5% YoY growth and 2.3% QoQ growth
  • Banking Outlets: 1,110 vs 1,104 (Sep-25)
  • Head Count: 18,300 vs 19,474 (Sep-25)
  • Presence: 27 States & UTs
  • Secured: Unsecured Mix: 52% secured vs 47% unsecured (improving from 49% secured in Q1'27)
  • Portfolio Yield: Not specified in detail

Key drivers of operational performance: Continued diversification of asset portfolio, increasing share of secured loans, focus on low risk high yielding products, cross-selling to existing clients, portfolio de-risking via reduction in UP & Bihar exposure.

Segment-wise Performance

  • Micro-Banking Portfolio: ₹7,333 crore, showing (11.3)% YoY decline and 0.1% QoQ growth
  • Non Micro-Banking Portfolio: ₹12,730 crore, showing 22.6% YoY growth and 3.6% QoQ growth
  • JLG Portfolio: ₹5,146 crore, showing (32.4)% YoY decline and (6.1)% QoQ decline
  • Non-JLG Portfolio: ₹14,917 crore, showing 35.1% YoY growth and 5.6% QoQ growth

Explanation of significant changes in segment performance: Slowdown witnessed in JLG segment due to market disruptions, continued focus on high yield low risk products, non-JLG loan portfolio grew significantly by 35.1% YoY with increasing share of secured lending including MSME, Housing, and Gold loans.

Financial Highlights

Revenue: Not explicitly stated as single figure

EBITDA: Not explicitly stated

PAT: ₹(70) crore for Q2 FY27 vs ₹(348) crore Q2 FY26 (80% improvement YoY)

EPS: Not explicitly stated

Margins: Net Interest Margin at 6.3% for Q2 FY27

YoY/QoQ comparison: Q2 FY27 Operating Profit at ₹85 crore vs ₹(3) crore Q2 FY26; H1 FY27 Operating Profit at ₹149 crore vs ₹88 crore H1 FY26 (68% growth)

Drivers of financial performance: Total provisions reduced to ₹166 crore in Q2 FY27 from ₹462 crore Q2 FY26 (64% reduction), net interest income grew 24% YoY to ₹435 crore, though other income declined 4% YoY to ₹93 crore.

Comparison to market estimates: Not specified

Key Risks: Market disruptions in MFI segment, legacy stress in micro-banking portfolio, need for continued portfolio diversification.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified

Domestic: Not specified

Export: Not specified

Regional Breakdown: Focus on reducing UP & Bihar exposure while expanding retail in newer markets, targeting top-100 deposit centres of the country.

Balance Sheet Snapshot

Net Debt/Equity: Not explicitly stated

Reserves: Part of Net worth (Capital + Reserves) at ₹2,676 crore

Current Assets/Liabilities: Not specified

Working Capital/Leverage Metrics: Not specified

Financial Health Insights: Balance Sheet Size: ₹29,090 crore, showing 6% YoY growth; Net worth (Capital + Reserves): ₹2,676 crore, showing 12% YoY growth; Book Value per Share: ₹15.0.

Capex & Cash Flow Health

Capital Expenditure: Not specified

Free Cash Flow: Not specified

Operating Cash Flow: Not specified

Net Debt Movement: Borrowings: ₹1,939 crore, showing (1)% YoY change

Investment Rationale: Continue to invest in technology as means of improving customer experience, focus on applying data gathered over years to create analytical decision models.

Strategic & R&D Initiatives

Investments in Innovation: Technology-enabled process control, Loan Origination System integrated with rules engine, utilization of platforms for fraud detection, deployment of advanced analytical tools for financial due diligence.

Expected impact on growth: Strengthens preventive risk management, supports prudent credit decisioning, enables early identification of inconsistencies or potential stress indicators.

Strategic Rationale: Diversifying asset portfolio, growing retail deposits mix, increasing share of fee income, increasing use of technology and digital offerings for last mile delivery.

Industry Trends & Business Environment

Macro/Industry Trends: Market disruptions in MFI segment, focus on financial inclusion for unserved and underserved segments, growing demand for MSME, housing and other secured lending products.

Impact on Company: JLG loan book declined in Q2 FY27 as Bank slowed disbursements and focused on collections, necessitating shift towards secured lending products and newer markets.

Management Commentary & Growth Outlook

Strategic Outlook: Continue diversifying asset portfolio, consistently increase share of secured loans, leverage wide base of existing customers, extend product offerings from JLG loans to individual loans, affordable housing and other new products.

FY Guidance: Not explicitly stated

Market Share Targets: Not specified

Risks and Opportunities: Legacy stress recognition and containment, improved collections and SMA trend reversals, strong collections infrastructure in place for faster recoveries and lower slippages.

Capital Adequacy

  • CRAR: 17.0% with Tier-I at 12.8% and Tier-II at 4.3%
  • Risk Weighted Assets: ₹14,915 crore

Asset Quality

  • GNPA: 5.9% vs 12.2% (Sep-25)
  • NNPA: 2.7% vs 4.9% (Sep-25)
  • PCR: 55.5%

Deposit Profile

  • Total Deposits: ₹23,869 crore, 6.6% YoY growth
  • CASA Deposits: ₹5,119 crore, 14.2% YoY growth
  • CASA%: 21% vs 20% (Sep-25)
  • Retail Term Deposits: ₹14,442 crore, 11.8% YoY growth
  • Institutional Term Deposits: ₹4,309 crore, (13.5)% YoY decline
  • Cost of Deposits: 7.5% for Q2 FY27