Utkarsh Small Finance Bank Reports Q1 FY2026 Unaudited Results; Net Profit Stands at (3,391.97)
Utkarsh Small Finance Bank Limited has disclosed its Unaudited Financial Results for the quarter ended June 30, 2026. The results were approved by the Board of Directors and subjected to a limited review report issued by the Joint Statutory Auditors of the Bank.The bank's performance metrics for the quarter included Total Income of 1,00,237.22 and Operating Profit before Provisions and Contingencies (PPC) standing at 6,356.74. The Net Profit for the period after tax was recorded as a loss of (3,391.97).
Key Financial Highlights
The bank maintained a Capital Adequacy Ratio (CAR) of 17.44% during the quarter. Gross Non-Performing Assets (NPA) stood at 1,16,318.01, which accounted for 6.09% of Gross Advances. The Net NPA ratio was reported at 2.86%.The financial stability metrics show a Total Debt to Total Assets ratio of 6.49%, and the Debt Equity Ratio stood at 0.67.
A summary of key financial indicators across all periods available is provided in the table below:
| Metric | Q ended June 30, 2026 (Unaudited) | Q ended March 31, 2026 (Refer Note 15) | Q ended June 30, 2025 (Unaudited) | Year ended March 31, 2026 (Audited) |
|---|---|---|---|---|
| Total Income | 1,00,237.22 | 95,207.02 | 1,01,865.14 | 3,80,974.69 |
| Interest Expended | 46,148.77 | 46,064.85 | 47,909.33 | 1,90,203.83 |
| Operating Profit (PPC) | 6,356.74 | 1,230.90 | 9,164.22 | 5,6~-1.98 |
| Net Profit after Tax | (3,391.97) | (18,801.56) | (23,948.05) | (1,15,097.84) |
| Capital Adequacy Ratio (CAR) | 17.44% | 17.71% | 19.64% | 17.71% |
| Gross NPA | 1,16,318.01 | 1,45,990.21 | 2,19,622.35 | 1,45,99'.l.21 |
Segmental Performance Review
The bank's operations are categorized across Retail, Wholesale, and Treasury segments. For the quarter ending June 30, 2026, segmental results were reported as follows (in lakh):| Segment | Income from Operations | Profit before Tax |
|---|---|---|
| Retail | 77,392.74 | (2,676.18) |
| Wholesale | 9,274.49 | 1,577.39 |
| Treasury | 13,569.99 | (3,442.68) |
Asset Management and Security Receipts Details
During the quarter ended June 30, 2026, the bank transferred assets to an Asset Reconstruction Company (ARC). The aggregate principal outstanding of loans transferred amounted to 72,681.81 lakh, with a weighted average residual tenor of 11.07 months. The aggregate consideration realized was 14,954.23 lakh.The bank also received Security Receipts (SRs) totaling n,166.30 lakhs as part of the consideration for stress loan transfers to ARC. Details on recovery ratings assigned to these SRs are listed below:
| Name of ARC | Recovery Rating | Anticipated Recovery Net (%) | Amount (~ in lakh) |
|---|---|---|---|
| PARAS | BWRRRJ | More than 100% and up to 150% | 3,351.57 |
| SHRIRAM | Unrated | - | 3,277.41 |
| ARCIL | Unrated | - | 7,014.40 |
| PARAS | Unrated | - | 3,956.00 |
| ARCIL Secured | Unrated | - | 2,191.74 |
| ARCIL Unsecured | Unrated | - | 1,018.56 |
Other Corporate Updates
The bank announced that its Capital Structuring and Fund Raise Committee approved the execution of a supplementary debenture trust deed to the Debenture Trust Deed dated June 26, 2020, entered with IDBI Trusteeship Services Limited. Furthermore, the committee approved the exercise of a call option on August 13, 2026, involving the redemption at par of 1,950 Rated, Listed, Unsecured, Redeemable, Lower Tier II Bonds (Non-Convertible Debentures) aggregating up to ~ 19,500 lakhs.Regarding ESOPs, the bank granted 50,000 stock options during the quarter, in addition to 1,80,80,603 options being vested and yet to be exercised out of a total of 4,73,54,271 unvested options.
UTKARSHBNK Stock Price Movement
On Friday, Utkarsh Small Finance Bank Limited shares edged higher in session, closing at ₹14.62 after gaining 2.66%. The stock traded briskly through the day, achieving a volume of 3.65 million shares.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.
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