Utkarsh Small Finance Bank approves ₹300 crore Tier II NCD issue
- Utkarsh Small Finance Bank approved ₹300 crore Tier II NCD issuance
- Instrument includes ₹200 crore base issue plus ₹100 crore green shoe option
- Debentures carry 7-year tenor with coupon up to 11.75% per annum
- Securities will be listed on BSE Wholesale Debt Market segment
*this image is generated using AI for illustrative purposes only.
Utkarsh Small Finance Bank has approved the issuance of Non-Convertible Debentures (NCDs) worth up to ₹300 crore through a private placement. The Capital Structuring & Fund Raise Committee (CSFRC) of the Board sanctioned the move on September 11, 2026.
NCD issuance details
The bank plans to raise funds via Rated, Listed, Unsecured, Subordinated, Redeemable, Lower Tier II bonds. The issuance comprises a base issue of ₹200 crore and an oversubscription option (green shoe) of up to ₹100 crore, bringing the total aggregate value to ₹300 crore. Each debenture will have a face value of ₹1,00,000.
| Parameter | Details |
|---|---|
| Instrument | Tier II Non-Convertible Debentures (NCDs) |
| Issuance size | Up to ₹300 crore (₹200 crore base + ₹100 crore green shoe) |
| Mode of issuance | Private placement |
| Tenure | 7 years from deemed date of allotment |
| Coupon rate | Up to 11.75% per annum (payable quarterly) |
| Listing | Wholesale Debt Market segment of BSE Limited |
The NCDs are unsecured and carry no charge over the bank's assets. Interest will be paid quarterly at a rate of up to 11.75% per annum. The securities are proposed to be listed on the Wholesale Debt Market segment of BSE Limited.
This approval falls within the borrowing limits previously approved by the Board of Directors under Section 180(1)(c) of the Companies Act, 2013, during its meeting on June 20, 2026. The initial Board resolution had permitted the issuance of up to ₹500 crore in Tier II bonds during FY27. This current tranche represents a portion of that broader mandate, subject to receipt of in-principle approval from BSE Limited and other necessary regulatory clearances.
The bank intends to utilize the electronic book mechanism on the Electronic Book Provider platform for the issuance, in compliance with SEBI NCS Master Circular guidelines.
Historical Stock Returns for Utkarsh Small Finance Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.04% | -3.63% | +2.35% | +13.26% | -21.88% | 0.0% |
How will the 11.75% coupon rate impact Utkarsh Small Finance Bank's net interest margins and overall profitability in the coming fiscal year?
What specific strategic initiatives or asset growth targets is the bank prioritizing with the ₹300 crore raised from this Tier II capital injection?
Given the remaining ₹200 crore borrowing limit under the FY27 mandate, are there indications of further debt issuances or equity raises planned by the bank?
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