Utkarsh Small Finance Bank Completes Portfolio Transfer of Stressed MFI Loans
Utkarsh Small Finance Bank Limited has finalized the transfer of portfolios of unsecured stressed Micro Finance Institution (MFI) loans to Asset Reconstruction Companies (ARC) following a Swiss Challenge Method, the Bank announced.The transactions involve two pools of stressed assets, with details as follows:
| Nature of accounts (Stressed Assets) | Number of Accounts | Aggregate Principal Outstanding as of December 31, 2025 (₹ Cr) | Consideration (₹ Cr) | Buyer |
|---|---|---|---|---|
| Pool 1 - Portfolio of Unsecured Stressed MFI Loans | 292,030 | 1,016.24 | 133.10 | Asset Reconstruction Company India Limited (ARCIL) |
| Pool 2 - Portfolio of Unsecured Stressed MFI Loans | 136,832 | 474.75 | 62.19 | Shriram Asset Reconstruction Private Limited (SARC) |
The aggregate principal outstanding for Pool 1 was ₹ 1,016.24 crore, sold for ₹ 133.10 crore. Pool 2 had an aggregate principal outstanding of ₹ 474.75 crore, and was sold for ₹ 62.19 crore.
Additional information is available on the Bank’s website at www.utkarsh.bank.in.
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