Utkarsh Small Finance Bank Limited — Investor Meet, 07-08-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Utkarsh Small Finance Bank reported a net loss of Rs. 239 Cr for Q1 FY26, attributing it to elevated JLG delinquencies and the impact of new MFIN lending caps (Guardrail 2.0). While the JLG book declined 7% QoQ, the non-JLG portfolio grew 39% YoY, with secured loans increasing to 45% of the book. Deposits showed strong traction, and the CASA+RTD ratio improved to 74%. Management expects JLG collections to stabilize in 3-4 months, anticipating reduced credit costs from Q3 FY26. The bank projects over 30% growth for its non-JLG book this fiscal, is raising Rs. 750 Cr equity, and eyes 8.5%+ NIM and 15%+ ROE in the medium term. Intensified collection efforts and credit guarantee coverage are in place to improve asset quality.