Utkarsh Small Finance Bank has successfully completed the transfer of stressed loan portfolios worth ₹1,490.99 crore to Asset Reconstruction Companies, following the Swiss Challenge Method auction process that concluded on March 31, 2026.

Transaction Completion Details

The bank informed stock exchanges about the successful completion of the portfolio transfer that was initially approved by the Management Committee on March 26, 2026. The transaction involved two distinct pools of unsecured stressed microfinance institution loans sold to separate ARCs.

Buyer Details and Process

Asset Reconstruction Company India Limited (ARCIL) acquired Pool 1 comprising 2,92,030 accounts with outstanding principal of ₹1,016.24 crore for a consideration of ₹133.10 crore. Shriram Asset Reconstruction Private Limited (SARC) purchased Pool 2 containing 1,36,832 accounts worth ₹474.75 crore for ₹62.19 crore.

The sale process followed the Swiss Challenge Method, which allowed existing offer holders the right to match the highest counter bids. The bank had published newspaper advertisements in Financial Express and Jansatta, inviting Expression of Interest from RBI-registered ARCs.

Sale Terms and Structure

The stressed assets were sold on "as is, where is" and "without recourse" basis, with no representations or warranties from the bank. The transaction structure included a combination of cash and Security Receipts, with minimum upfront payments of 47.29% for Pool 1 and 47.30% for Pool 2.

Regulatory Compliance

The completed transaction aligns with the bank's Transfer and Distribution of Credit Risk Policy and complies with RBI and SEBI regulatory requirements. Company Secretary Muthiah Ganapathy signed the regulatory filing on March 31, 2026, confirming the successful completion of the asset transfer process.

All transaction-related costs, taxes, and stamp duties were borne by the successful bidders as per the original sale terms. The disclosure has been made available on the bank's website at www.utkarsh.bank.in in compliance with listing obligations.

Utkarsh Small Finance Bank has announced that it has received regulatory approval from the Reserve Bank of India (RBI) for its Managing Director and Chief Executive Officer's compensation structure. The approval, communicated through RBI's letter dated March 17, 2026, covers both variable and fixed pay components for the senior executive.

RBI Approval Details

The central bank has approved two key components of Mr. Govind Singh's compensation package:

This approval aligns with the RBI's earlier communication dated September 16, 2024, indicating a structured regulatory review process for executive compensation in the banking sector.

Regulatory Compliance Framework

The bank has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The approval process involved multiple stakeholders:

• Shareholder Approval: Previously obtained from the bank's shareholders
• RBI Approval: Received through the March 17, 2026 letter
• SEBI Compliance: Disclosed under Schedule III of listing regulations

Corporate Governance Transparency

Utkarsh Small Finance Bank has ensured transparency by making this disclosure available on its official website at www.utkarsh.bank.in . The announcement was formally communicated to both major stock exchanges where the bank's securities are listed.

The disclosure was signed by Sarju Kumar Simaria, Chief Financial Officer, demonstrating the bank's commitment to proper corporate governance and regulatory compliance in executive compensation matters.