Utkarsh Small Finance Bank Limited has received a significant regulatory approval for its proposed amalgamation scheme with Utkarsh CoreInvest Limited. The bank announced on February 13, 2026, that it has received the National Company Law Tribunal (NCLT) order dated February 11, 2026, which schedules crucial meetings for stakeholder approval of the merger.

NCLT Order Details

The NCLT Allahabad Bench has directed the bank to conduct two separate meetings on March 28, 2026, as part of the amalgamation approval process. Both meetings will be held through video conferencing, reflecting the modern approach to corporate governance proceedings.

Background of Amalgamation Scheme

The amalgamation process involves Utkarsh Small Finance Bank Limited as the transferee company and Utkarsh CoreInvest Limited as the transferor company. The joint application was initially filed with the NCLT on December 26, 2025, under sections 230 to 232 and other applicable provisions of the Companies Act, 2013.

The scheme requires approval from both equity shareholders and unsecured creditors (excluding non-convertible debenture holders) before it can proceed to the final stages of implementation.

Regulatory Compliance and Transparency

The bank has ensured full compliance with regulatory requirements by making the NCLT order publicly accessible through the tribunal's official website. The order has been uploaded on the NCLT e-filing portal, demonstrating the bank's commitment to transparency in the amalgamation process.

Utkarsh Small Finance Bank has also confirmed that all relevant disclosures will be made available on its official website at www.utkarsh.bank.in , ensuring stakeholders have easy access to important information regarding the merger proceedings.

Next Steps

The bank is currently awaiting the certified copy of the NCLT order. The upcoming meetings on March 28, 2026, will be crucial for determining stakeholder sentiment regarding the proposed amalgamation scheme. The approval from both equity shareholders and unsecured creditors will be essential for the successful completion of the merger process.

Utkarsh Small Finance Bank has announced its Q3FY26 financial results, revealing a significantly widened net loss alongside declining loan portfolio performance. The bank faced substantial challenges during the quarter, with market disruptions in the microfinance segment impacting overall business operations and profitability.

Financial Performance Overview

The bank's Q3FY26 results demonstrate continued financial stress with deteriorating bottom-line performance. Net loss expanded substantially to ₹3.75 billion compared to ₹1.68 billion in the corresponding quarter of the previous year. Total income declined year-on-year while operational challenges persisted across key business segments.

Loan Portfolio and Asset Quality

The bank's gross loan portfolio declined to ₹18,306 crore as of December 31, 2025, representing a 3.9% year-on-year decrease from ₹19,057 crore. The Joint Liability Group (JLG) portfolio, including BC JLG, experienced a significant contraction of 34.1% to ₹6,419 crore, while the Non-JLG portfolio grew by 27.5% to ₹11,888 crore.

Deposit Growth and Funding Mix

Despite operational challenges, the bank achieved modest deposit growth of 4.5% year-on-year, with total deposits reaching ₹21,087 crore. CASA deposits grew by 16.1% to ₹4,611 crore, while retail term deposits increased substantially by 23.8% to ₹12,586 crore. The CASA ratio improved to 21.9% from 19.7% in the previous year.

Operational Challenges and Provisions

Operating expenses increased to ₹473 crore in Q3FY26 from ₹400 crore in Q3FY25, representing an 18.19% year-on-year growth. Personnel costs rose to ₹246 crore from ₹225 crore, while other operating expenses increased significantly. Total provisions for the quarter stood at ₹446 crore compared to ₹423 crore in the corresponding period last year.

The bank's results reflect the impact of market disruptions in the microfinance segment, with management focusing on strengthening collection efforts and improving asset quality metrics. Despite the challenging operating environment, the bank maintained a robust capital adequacy ratio of 20.11% and continued expanding its retail deposit franchise.