Utkarsh Small Finance Bank Approves Sale of Stressed Assets to ARC
Utkarsh Small Finance Bank Limited announced on March 26, 2026, that its Management Committee has approved a proposal to sell non-performing assets (NPAs) and written-off loans to an Asset Reconstruction Company (ARC). The sale involves two portfolios of unsecured stressed Micro Finance Institution (MFI) loans.The first portfolio, designated as Pool 1, includes assets with an aggregate principal outstanding of approximately Rs. 1,016.24 crore as of December 31, 2025. The reserve price or binding offer for this pool is Rs. 133.10 crore. The sale structure involves a combination of cash payment and security receipts.
The second portfolio, Pool 2, comprises assets with an aggregate principal outstanding of approximately Rs. 474.75 crore as of December 31, 2025. The reserve price or binding offer for this pool is Rs. 62.19 crore, with the sale structured as cash plus security receipts.
Utkarsh Small Finance Bank is releasing a newspaper advertisement for an Expression of Interest (EOI) related to the sale. The bank will provide a separate update upon completion of the proposed transaction.
| Nature of accounts (Stressed Assets) | Aggregate Principal O/s as on 31.12.2025 | Reserve Price / Binding Offer | Term of Sale |
|---|---|---|---|
| Pool 1 - Portfolio of Unsecured Stressed MFI Loans | ~Rs. 1,016.24 crore | Rs. 133.10 crore | Cash + Security Receipts |
| Pool 2 - Portfolio of Unsecured Stressed MFI Loans | ~Rs. 474.75 crore | Rs. 62.19 crore | Cash + Security Receipts |
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