Utkarsh Small Finance Bank Announces Audited Financial Results for March 31, 2026

Utkarsh Small Finance Bank Announces Audited Financial Results for March 31, 2026​

Mumbai, May 9, 2026: Utkarsh Small Finance Bank Limited announced its financial results for the quarter and full year ending March 31, 2026. The Board of Directors approved these financial results during a meeting held on May 9, 2026.

Key metrics for the quarter and financial year highlighted significant growth in disbursements and structural improvements in asset quality and capital position.

Financial Performance Highlights (As on March 31, 2026)​

The bank's financial standing saw notable developments in its loan portfolio, deposit base, and capital adequacy ratios.


For the specific quarter and full year:

• Quarter 4, FY26: The bank reported a net loss of ₹188 crore, a decrease of 50% from the ₹375 crore loss reported in Q3, FY26.
• Full Year FY26: The reported net loss was ₹1,151 crore, compared to a Profit After Tax (PAT) of ₹24 crore in FY25.

Operational and Strategic Developments​

The bank noted that the Quarter 4, FY26 was marked by strategic recalibration, focusing on portfolio quality, secured asset expansion, and operational strengthening.

Disbursements witnessed robust growth, with total disbursements increasing by 46.1% Quarter-on-Quarter (QoQ). Specifically, Joint Liability Group (JLG) Disbursements grew by 58.2% QoQ, while Non-JLG disbursements expanded by 40.6% QoQ.

The bank reinforced its structural de-risking strategy by deliberately pivoting toward secured, higher-yield, and lower-risk portfolios. Non-JLG portfolios, including MSBL, MSME, and Housing, showed strong momentum, with the Micro-Business and Bank Loan (MBBL) portfolio growing by 122% Year-on-Year (YoY).

In terms of stability and risk control, the fresh NPA slippages (net of recoveries and upgradations) declined materially to approximately ₹170 crore in Q4, FY26, compared to ₹710 crore in Q4, FY25. Furthermore, the JLG X-bucket collection efficiency strengthened to 99.7% in March 2026, marking the highest rate in four quarters of FY26.

Deposits mobilization remained a priority. Retail term deposits grew by 19.6% YoY, reaching ₹12,720 crore, while CASA deposits increased by 10.6% YoY to ₹5,196 crore as of March 31, 2026. The bank also strengthened its capital base through a successful ₹950 crore rights issue in November 2025, which augmented its Tier-1 capital.

Utkarsh Small Finance Bank Overview​

Utkarsh Small Finance Bank Limited (USFBL) commenced operations on January 23, 2017, providing banking and financial services with a focus on underserved and unserved sections. The bank offers a range of services, including current, saving, and term deposits, alongside digital services like Internet and Mobile Banking. Lending products include Joint Liability Group (JLG) loans, Micro-Business and Bank Loans (MBBL), Micro, Small and Medium Enterprise (MSME) Loans, and Housing Loans (HL). The bank has established a presence across 27 States and UTs via a network of 1,110 branches.

UTKARSHBNK Stock Price Movement​

On Friday, shares of Utkarsh Small Finance Bank Limited slipped by 0.13% to settle at ₹15.49. The stock saw significant trading volume, processing 6.54 million shares during the session.