Utkarsh Small Finance Bank reported a 48.5% year-on-year increase in total disbursements to ₹3,370 crore for the quarter ended June 30, 2026. Non-JLG disbursements surged 92.9% to ₹2,180 crore, driving the overall growth, while JLG disbursements rose 4.5% to ₹1,190 crore. Sequentially, total disbursements declined 19.9% from ₹4,207 crore in Q4 FY26.

The bank's gross loan portfolio stood at ₹19,612 crore, a 2% increase from ₹19,224 crore in Q1 FY26. The portfolio mix shifted significantly, with the JLG to Non-JLG ratio moving to 28:72 from 45:55 in the prior year. The secured to unsecured ratio improved to 51:49 from 45:55 YoY.

Total deposits grew 2.6% year-on-year to ₹22,053 crore, supported by a 14.7% rise in retail term deposits to ₹13,393 crore. Bulk term deposits decreased 32.1% to ₹3,794 crore. The CASA ratio improved to 22.1% from 19.7% in Q1 FY26, while the CASA plus retail term deposits ratio stood at 82.8%.

Asset quality metrics for the micro-banking segment showed improvement, with the SMA pool percentage contracting to 1.20% in Q1 FY27 from 5.10% in the same period last year. The X Bucket Collection Efficiency was recorded at 99.63%. The bank maintained a Liquidity Coverage Ratio (LCR) of 223% as on June 30, 2026.

Business Performance Summary

Micro-Banking Asset Quality

The figures for Q1 FY27 are provisional and subject to review by the Joint Statutory Auditors, as well as approval by the Audit Committee and Board of Directors.

Utkarsh Small Finance Bank has informed that the National Company Law Tribunal (NCLT), Allahabad Bench, has fixed the hearing of the joint company petition for the scheme of amalgamation of Utkarsh CoreInvest Limited with Utkarsh Small Finance Bank Limited on July 23, 2026. The petition was filed by the petitioner companies on April 5, 2026, under Sections 230 to 232 of the Companies Act, 2013.

The order to fix the hearing was passed by the Hon'ble Tribunal on May 18, 2026. Any person desirous of supporting or opposing the joint company petition must send a notice of their intention to the petitioner company 2 at the bank's registered office. The notice, signed by the person or their advocate, must include their name and address and reach the bank not later than two days before the hearing date, i.e., July 23, 2026.

In cases where a person seeks to oppose the petition, the grounds of opposition or a copy of their affidavit must be furnished with the notice. A copy of the joint company petition will be made available to any person requiring the same upon payment of the prescribed charges.