Utkarsh Small Finance Bank conducted a National Company Law Tribunal (NCLT) convened meeting of unsecured creditors on March 28, 2026, to deliberate on the scheme of amalgamation between Utkarsh CoreInvest Limited and the bank. The meeting, held through video conferencing at 03:30 p.m. IST, concluded with unanimous approval of the amalgamation scheme, as confirmed by the scrutinizer's report dated March 31, 2026.

Meeting Structure and Voting Results

The unsecured creditors meeting was conducted in compliance with the Companies Act, 2013, and SEBI Listing Regulations. Company Secretary and Compliance Officer Muthiah Ganapathy confirmed attendance of 16 unsecured creditors, with the bank subsequently disclosing comprehensive voting results through its April 1, 2026 communication to stock exchanges.

Comprehensive E-Voting Process and Unanimous Approval

The bank implemented a comprehensive e-voting mechanism through National Securities Depository Limited (NSDL) platform, ensuring transparent creditor participation in the decision-making process. The voting rights were proportionate to outstanding amounts due by the company as on the cut-off date of November 30, 2025.

Detailed Voting Results and Creditor Participation

According to the scrutinizer's report issued by CA Sumit Agrawal on March 31, 2026, the voting process demonstrated strong creditor support for the amalgamation scheme. The results showed complete unanimity among participating creditors.

Scheme Approval and Regulatory Compliance

The resolution for approval of the Scheme of Amalgamation between Utkarsh CoreInvest Limited and Utkarsh Small Finance Bank Limited was passed with the requisite majority, exceeding the required three-fourths in value of unsecured creditors present. The scheme received prior approvals from Reserve Bank of India dated January 2, 2025, and no adverse observation letters from BSE Limited and National Stock Exchange of India Limited dated July 4, 2025, and July 7, 2025, respectively.

Final Documentation and Disclosure

In accordance with Regulation 44 of the SEBI Listing Regulations, the bank disclosed the combined e-voting results along with the scrutinizer's report to stock exchanges on April 1, 2026. The meeting summary and related disclosures are available on the bank's website at www.utkarsh.bank.in , ensuring transparency and regulatory compliance under Regulation 30 of the SEBI Listing Regulations. All relevant records relating to the voting process have been sealed and handed over to the Company Secretary for safe keeping.

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.