Utkarsh Small Finance Bank has made the audio recording of its earnings conference call available to investors and analysts. The call, held on Monday, August 03, 2026, at 04:00 p.m. (IST), discussed the bank's unaudited financial results for the quarter ended June 30, 2026. This disclosure ensures transparency regarding management's commentary on the latest financial performance.

The disclosure is made pursuant to Regulation 30 read with Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The audio recording can be accessed via the link provided on the bank's official website. This follows a letter dated July 29, 2026, notifying stakeholders of the upcoming conference call.

Key Disclosures

The bank has provided specific details regarding the availability of materials related to the earnings discussion:

The investor presentation accompanying the call was submitted to the stock exchanges vide the bank's letter dated August 01, 2026. It is also available on the bank's website at www.utkarsh.bank.in . The transcript of the call will be submitted in accordance with the SEBI Listing Regulations at a later date.

Compliance Details

The communication was issued by Muthiah Ganapathy, Company Secretary & Compliance Officer, on behalf of Utkarsh Small Finance Bank Limited. The registered and corporate office of the bank is located at Utkarsh Tower, NH-31 (Airport Road) Sehmapur, Kazi Sarai, Harhua, Varanasi, Uttar Pradesh - 221105. The company identification number (CIN) is L65992UP2016PLC082804.

This filing serves as a formal record for investors and regulatory bodies, ensuring that all market participants have equal access to the management's commentary on the quarter's performance. No financial metrics were disclosed in this specific communication, as it pertains solely to the availability of the earnings call recording.

Utkarsh Small Finance Bank reported an 86% year-on-year reduction in its net loss to ₹34 crore for the quarter ended June 30, 2026 (Q1FY27), marking a significant turnaround from the ₹239 crore loss recorded in Q1FY26. The improvement was driven by a sharp recovery in asset quality, with gross non-performing assets (GNPA) falling by approximately 550 basis points (bps) year-on-year to 5.9%, and credit costs declining by ~620 bps to 2.3%. This financial stabilization coincided with a robust rebound in lending activity, as total disbursements surged 48.5% YoY to ₹3,370 crore, signaling renewed confidence in the bank’s franchise quality and portfolio resilience.

The Board of Directors approved the unaudited financial results at a meeting held on August 01, 2026, following a limited review by Joint Statutory Auditors M M Nissim & Co LLP and KKC & Associates LLP. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Management attributed the improved bottom line to disciplined underwriting, structural de-risking of unsecured exposures, and targeted collection initiatives that reduced fresh NPA slippages (net of recoveries) to ~₹125 crore from ~₹400 crore in the corresponding period last year.

Key Financial Metrics

Note: Q4FY26 disbursement figures were not explicitly stated in absolute terms but implied via growth rates; Portfolio values are as on quarter-end.

Portfolio Diversification and Funding Stability

The bank’s gross loan portfolio grew by 2.0% YoY to ₹19,610 crore, reflecting a strategic pivot towards secured lending which now constitutes 51% of the total portfolio, up from 45% a year ago. Within the micro-banking segment, the Micro-Banking Business Loan (MBBL) portfolio expanded by 147% YoY, accounting for over 30% of the segment. Disbursements were bifurcated into Joint Liability Group (JLG) loans, which grew 4.5% YoY, and non-JLG loans, which surged 92.9% YoY. This shift towards higher-ticket, secured products such as MSME loans, housing finance, and gold loans has strengthened balance sheet quality.

On the liability side, total deposits grew by 2.6% YoY to ₹22,054 crore. The cost of funds improved by ~40 bps YoY to 7.7%, supporting a ~20 bps expansion in the Net Interest Margin (NIM) to 6.1%. CASA deposits increased by 15.1% YoY to ₹4,867 crore, raising the CASA ratio to 22.1% from 19.7% a year ago. Retail term deposits grew by 14.7% YoY to ₹13,393 crore, while the share of institutional term deposits decreased to 17.2% from 26.0%, highlighting a successful move towards granular funding. The credit-deposit ratio stood at 83.8%, and the Capital Adequacy Ratio (CRAR) remained robust at 17.4%, well above the regulatory threshold of 15%.

What the Numbers Show

The divergence between the sharp rise in PPoP and the persistent, albeit narrowing, net loss underscores Utkarsh Small Finance Bank’s transitional phase. While operational income generation has recovered strongly—evidenced by the PPoP turning positive to ₹64 crore—the balance sheet continues to absorb legacy stress through provisions. However, the dramatic drop in credit costs from 8.5% to 2.3% suggests that the peak of asset quality deterioration is behind the bank. Furthermore, the implementation of the Credit Guarantee Fund for Microfinance Units (CGFMU) scheme, which covered ~60% of the microfinance portfolio and provided ~₹75 crore in mitigation during the quarter, has materially reduced provisioning pressures. With JLG X-bucket collection efficiency holding steady at 99.7% and SMA pools declining, the strategic focus on secured lending and technological upgrades under the 'Utkarsh 2.0' project positions the bank for sustainable profitability in subsequent quarters.