Utkarsh Small Finance Bank Limited — Investor Meet, 06-02-2026: Analysts/Institutional Investor Meet/Con. Call Updates

Utkarsh SFB navigated Q3 FY26 with a net loss of INR 375 Cr, but sees asset quality stress peaking. Gross Loan Book contracted 3.9% YoY, driven by a 16% QoQ decline in JLG, a conscious recalibration. Secured lending now comprises 50% of the loan book, with Micro Banking Business Loans (MBBL) growing 80% YoY to be a cornerstone of micro banking strategy. Overall X-bucket collection efficiency improved to 99.5% in December.

The bank strengthened capital with a INR 950 Cr rights issue, maintaining a strong 20.1% Capital Adequacy. Deposits grew 5% YoY, with CASA + Retail Term Deposits (RTD) at 82%. Management targets 25-30% loan book growth, 8.5% Net Interest Margin, and 15% Return on Equity by FY28, emphasizing diversification, operational efficiency, and technology. Management is confident in Q4 improvement and a return to profitability in FY27.