Utkarsh Small Finance Bank Q2FY27 Results: Disbursements up 54.9% YoY to ₹3,525 crore
- Total disbursements rose 54.9% YoY to ₹3,525 crore
- Non-JLG disbursements surged 94.2% YoY to ₹2,602 crore
- JLG loan portfolio contracted 32.4% YoY to ₹5,146 crore
- CASA ratio improved to 21.5% from 20.0% in Q2FY26
- LCR stood at 176% as on September 30, 2026
*this image is generated using AI for illustrative purposes only.
Utkarsh Small Finance Bank reported its Q2FY27 business update, with total disbursements rising 54.9% YoY to ₹3,525 crore, signalling a sharp recovery in lending activity.
Key business metrics at a glance
The bank's Q2FY27 update covered three core areas: loan disbursements, the gross loan portfolio, and deposit mobilisation. The following table summarises the reported figures:
| Metric | Q2FY27 | YoY Change |
|---|---|---|
| Total disbursements | ₹3,525 crore | +54.9% |
| Gross loan portfolio | ₹20,063 crore | +7.5% |
| Total deposits | ₹23,869 crore | +6.6% |
| CASA ratio | 21.5% | Improved |
Loan portfolio and disbursement growth
The gross loan portfolio expanded 7.5% YoY to ₹20,063 crore, reflecting steady credit growth even as the disbursement pace accelerated sharply. Total disbursements of ₹3,525 crore represented a 54.9% YoY increase, indicating a significant step-up in loan origination activity during the quarter.
Deposit base and CASA improvement
On the liability side, total deposits grew 6.6% YoY to ₹23,869 crore. The CASA ratio improved to 21.5%, reflecting a higher proportion of low-cost current and savings account deposits within the overall deposit mix. A rising CASA ratio is generally associated with a more favourable funding cost structure for small finance banks.
Detailed disbursement and portfolio mix
A deeper look at the loan book reveals a strategic shift away from Joint Liability Group (JLG) lending towards non-JLG segments. Non-JLG disbursements surged 94.2% YoY to ₹2,602 crore, while JLG disbursements declined 1.3% YoY to ₹923 crore. This trend is mirrored in the outstanding portfolio, where the non-JLG segment grew 35.1% YoY to ₹14,917 crore, offsetting a 32.4% YoY contraction in the JLG portfolio to ₹5,146 crore.
Consequently, the portfolio mix shifted significantly, with the JLG-to-non-JLG ratio moving from 41:59 in Q2FY26 to 26:74 in Q2FY27. The secured-to-unsecured mix also improved, rising to 52:48 from 47:53 a year ago.
Asset quality and liquidity metrics
Asset quality indicators showed mixed trends compared to the previous year but remained robust against the prior quarter. The X Bucket Collection Efficiency stood at 99.53% in Q2FY27, an improvement from 98.62% in Q2FY26, though slightly lower than the 99.63% recorded in Q1FY27. The SMA Pool percentage was 1.48%, down from 4.87% in Q2FY26 but up from 1.20% in Q1FY27.
Liquidity remained strong, with the Liquidity Coverage Ratio (LCR) standing at 176% as on September 30, 2026. The CASA plus Retail Term Deposits ratio improved to 82.0% from 77.8% in Q2FY26, indicating a stable retail-centric funding base.
Historical Stock Returns for Utkarsh Small Finance Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.27% | -0.52% | -7.14% | +15.36% | -28.20% | -66.82% |
How will the rapid shift from JLG to non-JLG lending impact Utkarsh Small Finance Bank's net interest margins and credit risk profile in the coming quarters?
Can Utkarsh SFB sustain its 54.9% disbursement growth rate without compromising asset quality, given the slight uptick in SMA pool percentages quarter-over-quarter?
What specific strategies is the bank employing to further improve its 21.5% CASA ratio to reduce funding costs amidst rising competition for low-cost deposits?
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