Utkarsh Small Finance Bank (UTKARSHBNK) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 marked a turning point with improved business momentum, asset quality, and operational performance, and total assets at ₹28,418 crore, up 2% year-over-year.

• The bank operates 1,110 outlets across 27 states/UTs with a headcount of 18,136, focusing on de-risking via increased secured loans and retail deposits.

• Unaudited financial results for the quarter ended June 30, 2026, were approved by the Board and reviewed by joint statutory auditors, with an unmodified conclusion issued.

Financial highlights

• Total disbursement grew 49% year-on-year; JLG disbursement up 5%, non-JLG up 93% year-on-year.

• Net loss reduced to ₹3,391.97 lakh in Q1 FY27, down from ₹23,948.05 lakh in Q1 FY26; operating profit before provisions was ₹6,356.74 lakh.

• Gross NPA ratio improved to 5.9% as of June 2026, down from 11.4% a year ago; Net NPA at 2.8%.

• CASA plus retail term deposit ratio improved to 83%, CASA ratio at 22%.

• Total income for Q1 FY27 was ₹1,00,237.22 lakh, up from the previous quarter.

Outlook and guidance

• Targeting loan book growth of 25%-30% year-on-year, with secured lending to comprise 55%-65% of the portfolio by FY 2028.

• Aiming to maintain NIM around 8% and deliver ROE of 15% by FY 2028.

• Credit cost guidance for the year is 3%-3.5%.

• No equity capital raise planned until at least end of FY 2027; INR 500 crore Tier 2 NCD issuance planned.

• Amalgamation with Utkarsh CoreInvest Limited progressing, with regulatory and shareholder approvals in process.