Utkarsh Small Finance Bank has reported mixed Q3 financial results, with challenging profitability metrics offset by notable improvements in asset quality indicators. While the bank continues to face losses and revenue decline, the improvement in key asset quality ratios suggests progress in credit risk management.

Financial Performance Overview

The bank's Q3 results present a complex picture, with widening losses and declining revenue, but encouraging trends in asset quality management.

Asset Quality Improvement

Despite the challenging financial performance, Utkarsh Small Finance Bank demonstrated significant improvement in asset quality metrics during Q3. The bank's asset quality indicators showed positive momentum on a quarter-on-quarter basis.

Revenue and Loss Analysis

The bank's revenue performance showed a notable decline, falling from ₹9.30 billion in the previous year's Q3 to ₹8.20 billion in the current Q3. This revenue contraction, combined with the widening losses, indicates operational challenges that the bank is currently addressing.

The net loss expansion from ₹1.68 billion to ₹3.75 billion represents a significant deterioration in the bank's bottom-line performance. However, the improvement in asset quality ratios suggests that the bank's credit risk management initiatives are beginning to show positive results.

Mixed Performance Indicators

The quarter-on-quarter improvement in both GNPA and NNPA ratios indicates that Utkarsh Small Finance Bank is making progress in managing its loan portfolio quality. The GNPA reduction from 12.42% to 11.05% and NNPA improvement from 5.02% to 4.48% demonstrate the bank's efforts to strengthen its asset quality framework.

While the bank continues to navigate profitability challenges, the positive trend in asset quality metrics provides a foundation for potential future recovery in the competitive small finance banking sector.

Utkarsh Small Finance Bank has issued a comprehensive postal ballot notice dated January 28, 2026, seeking shareholder approval for three critical business resolutions through electronic voting. The bank has engaged KFin Technologies Limited as the service provider to facilitate the e-voting process for all eligible shareholders.

Key Resolutions for Shareholder Approval

The postal ballot encompasses three significant resolutions that require shareholder consent:

E-Voting Schedule and Process

The electronic voting process has been structured to ensure maximum shareholder participation. The e-voting period will commence on Friday, January 30, 2026 at 9:00 AM (IST) and conclude on Saturday, February 28, 2026 at 5:00 PM (IST). KFin Technologies Limited will disable the e-voting module immediately after the deadline.

Shareholders whose names appear in the Register of Members or Register of Beneficial Owners maintained by NSDL and CDSL as on Friday, January 23, 2026 (cut-off date) are eligible to participate in the voting process. The postal ballot notice is being sent electronically to all members whose email addresses are registered with the depositories.

Director Appointments and Qualifications

Dr. Ram Jass Yadav - New Appointment

Dr. Ram Jass Yadav, aged 61 years, brings over 40 years of diversified banking experience across retail, corporate, treasury, credit, risk management, compliance, and governance. He holds qualifications including Ph.D in Banking and Finance, M.Com, CAIIB, MBA, FCMA and Company Secretary certification. His appointment as Additional Director took effect from January 03, 2026, and the proposed term extends from January 03, 2026 to January 02, 2031.

Mr. Ajay Kumar Kapur - Re-appointment

Mr. Ajay Kumar Kapur, aged 66 years, currently serves as Independent Director and is proposed for re-appointment for a second term of 3 consecutive years from March 02, 2026 to March 01, 2029. He holds a Bachelor of Engineering degree and has previously been associated with Punjab Tractors Limited, Industrial Development Bank of India, and SIDBI. During FY 2024-25, he received sitting fees of ₹33.40 lakh and fixed remuneration of ₹9.00 lakh.

CEO Remuneration Approval

The bank seeks approval for Mr. Govind Singh's remuneration as Managing Director & CEO for FY 2025-26. The proposed remuneration structure includes:

Mr. Govind Singh, aged 60 years, holds 1101390 equity shares in his personal capacity and has attended all 10 Board meetings during the current period.

Compliance and Regulatory Framework

The postal ballot process complies with Section 110 of the Companies Act, 2013, SEBI Listing Regulations, and applicable RBI guidelines. The bank has appointed Mr. Avinash Bagul (FCS:5578, COP:19862) and alternatively Mr. K Venkataraman (ACS:8897, COP:12459) of BNP & Associates as Scrutinizers to ensure fair and transparent voting.

The results will be announced within two working days of the e-voting conclusion, on or before March 03, 2026. The results will be made available on the bank's website, stock exchange platforms, and KFin's e-voting portal, ensuring complete transparency for all stakeholders.