Utkarsh Small Finance Bank has completed the sale of stressed assets, including non-performing assets (NPA) and written-off loans, to Asset Reconstruction Companies (ARCs). The transaction, concluded via the Swiss Challenge Method, involves an aggregate principal outstanding of ₹726.82 crore as on March 31, 2026. The bank received a total consideration of ₹149.55 crore for the transfer of these three distinct asset pools, a move aimed at cleaning up its balance sheet.

The sale was approved by the authorised Management Committee on June 26, 2026. The assets were divided into three pools: Pool 1 and Pool 2 consisting of unsecured microfinance institution (MFI) loans, and Pool 3 comprising secured commercial vehicle and construction equipment loans. The intimation was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Asset Sale

The following table outlines the specifics of the three asset pools sold to the respective buyers:

Muthiah Ganapathy, Company Secretary & Compliance Officer, signed the regulatory filing on June 30, 2026. The disclosure is available on the bank's official website.

Utkarsh Small Finance Bank has approved the issuance of Unsecured, Subordinated, Redeemable, Tier II bonds in the form of Non-Convertible Debentures (NCDs) aggregating up to ₹500 crore on a private placement basis. The instruments, designated as additional Tier II capital, will be issued in one or more tranches during FY 2026-27, subject to necessary regulatory approvals. This capital raise is intended to strengthen the bank's capital adequacy and support its long-term growth trajectory.

The Board of Directors, at its meeting held on June 20, 2026, approved the issuance. The proposed issue will be within the borrowing limits provided for under Section 180(1)(c) of the Companies Act, 2013. The board meeting commenced at 10:00 a.m. and concluded at 07:30 p.m. on June 20, 2026.

Pursuant to the recommendation of the Nomination and Remuneration Committee and approval from the Reserve Bank of India, the board appointed Mr. Sarjukumar Pravin Simaria as an Additional Director in the category of Whole Time Director (Executive Director) for a period of three years effective June 22, 2026. This appointment is subject to shareholder approval. Consequently, Mr. Simaria has relinquished his position as Chief Financial Officer of the bank with effect from the close of business hours on June 20, 2026, to comply with regulatory requirements for his new role.

Mr. Simaria brings over three decades of post-qualification experience in the financial services sector, having served as Chief Financial Officer across banking, insurance, NBFCs, and asset management. During his 3.5-year tenure as CFO, he steered the bank through its Initial Public Offering, which was subscribed over 100 times, and recently led a ₹950 crore capital raise.

The 10th Annual General Meeting of the Bank is scheduled to be held on Tuesday, August 04, 2026, at 02:30 p.m. IST through Video Conferencing. The notice convening the AGM and the Annual Report for the financial year 2025-26 will be dispatched to shareholders in due course.