Utkarsh Small Finance Bank Approves Sale of NPA and Written-Off Loans to ARC
Utkarsh Small Finance Bank Limited has approved a proposal for the sale of Non-Performing Asset (NPA) and written-off loans, outlining the specific parameters for these distressed assets. The decision was reached by the bank's authorised Management Committee during its meeting held on June 26, 2026.The management committee reviewed portfolios comprising unsecured MFI loans and secured commercial vehicle and construction equipment loans, setting binding offers and terms for prospective bidders who express interest in acquiring these stressed assets. The sale initiative aims to streamline the recovery of these specific asset classes.
The approved details regarding the distressed loan pools are as follows:
| Nature of Accounts (Stressed Assets) | Number of A/c's | Aggregate Principal Outstanding (31.03.2026) | Reserve Price / Binding Offer | Starting Counter Bid Price (5% mark-up) | Sale Term Details |
|---|---|---|---|---|---|
| Pool 1 - Portfolio of Unsecured MFI Loans | 1,67,271 | Rs. 507.42 crore | Rs. 75.35 crore | Rs. 79.12 crore | 100% Cash upfront or Cash + Security Receipts with minimum 50.50% in cash |
| Pool 2 - Portfolio of Unsecured MFI Loans | 47,168 | Rs. 143.12 crore | Rs. 20.04 crore | Rs. 21.04 crore | 100% Cash upfront or Cash + Security Receipts with minimum 49.15% in cash |
| Pool 3 - Portfolio of Secured Commercial Vehicle & Construction Equipment Loans | 288 | Rs. 76.29 crores | Rs. 49.59 crore | Rs. 52.07 crore | 100% Cash upfront or Cash + Security Receipts with minimum 55.80% in cash |
In conjunction with the internal approval, the bank is simultaneously releasing a newspaper advertisement inviting Expression of Interest (EOI) for these assets. Utkarsh Small Finance Bank will provide further updates once the proposed deals are completed.
UTKARSHBNK Stock Price Movement
Shares of Utkarsh Small Finance Bank Limited slipped by 2.02% on Thursday, settling at ₹14.52 as traders wrapped up activity in the financial services sector. The equity saw a traded volume of 7,742,037 shares and completed its session within a daily range bounded by ₹14.46 and ₹15.14.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.