Utkarsh Small Finance Bank Q2 FY27: PAT ₹-34 & Rev ₹19,610 Cr

1 Financial Results 🔴 High Importance Neutral 📄 PDF

Investor Takeaways

Net loss narrowed sharply to ₹34 crore from ₹239 crore YoY, reflecting significant loss reduction

Gross NPAs improved to 5.9% from 11.4% YoY, indicating better asset quality

Cost of funds declined by 40 bps to 7.7%, supporting margin improvement

Net Interest Margin expanded by 20 bps YoY to 6.1%

CRAR stood at 17.4%, comfortably above the 15% regulatory requirement

Secured loans increased to 51% of the loan portfolio from 45% a year earlier

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹19,610 Cr	N/A
Net Profit	₹-34 Cr	Improved from ₹-239 Cr
Gross NPAs	5.9%	Improved from 11.4%
Cost of Funds	7.7%	Down 40 bps
Net Interest Margin	6.1%	Up 20 bps
CRAR	17.4%	Above 15% threshold
Secured Loans	51% of portfolio	Up from 45%

What Changed

Utkarsh Small Finance Bank reported a net loss of ₹34 crore for Q1 FY27, a substantial improvement from the ₹239 crore loss recorded in Q1 FY26. This reduction was driven by operational enhancements including a 48.5% YoY increase in disbursements and a 2% YoY rise in the gross loan portfolio to ₹19,610 crore. Deposits grew by 2.6% YoY to ₹22,054 crore, while the cost of funds declined by 40 basis points to 7.7%, contributing to a 20 basis point expansion in net interest margin to 6.1%. The gross NPA ratio improved significantly to 5.9% from 11.4% YoY, reflecting better asset quality. The bank’s Capital to Risk-Weighted Assets Ratio (CRAR) strengthened to 17.4%, well above the 15% regulatory minimum. Additionally, secured loans now constitute 51% of the loan book, up from 45% in the previous year, indicating progress in portfolio diversification and risk mitigation.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Utkarsh Small Finance Bank	Not available	Not available	Not available	2,400.58
HDFC Bank Limited	15.5	14.3%	24.4%	1,181,607.38
ICICI Bank Limited	15.47	N/A	N/A	892,242
State Bank of India	10.44	N/A	N/A	889,093.09

Utkarsh’s CRAR of 17.4% exceeds that of its peers in terms of capital adequacy, though direct ROE and ROCE comparisons are not available for the bank. Its market capitalization is significantly lower than that of HDFC Bank, ICICI Bank, and SBI, reflecting its smaller scale of operations within the financial services sector.

Risks & Concerns

No specific risks were identified in the filing beyond the ongoing need for sustained margin expansion and risk management progress

Full profitability remains dependent on continued improvement in net interest margin and control of credit costs

Quarterly Trend

[Not applicable — quarterly trend data beyond the current filing is not provided in the context]

2 Financial Results 🔴 High Importance Neutral 📄 PDF

📢 Key Event
Utkarsh Small Finance Bank reports 147% YoY growth in micro-business loans and improved asset quality in Q1 FY27

🔄 What Changed
Gross NPA decreased to 5.9% from 7.6% previous quarter; net NPA fell to 2.8% from 3.2%; total disbursements rose to ₹3,370 crores

🔮 What's Next
Management highlighted ongoing technology transformation initiatives and ESG progress with '62-Strong' rating

💡 Investor Takeaway
Improved asset quality and strong loan growth signal operational momentum, though NPA levels remain elevated

Utkarsh Small Finance Bank reported Q1 FY27 results with a 147% YoY jump in micro-business loans to ₹2,246 crores, driving total disbursements to ₹3,370 crores. Gross NPA fell to 5.9% from 7.6% last quarter, while net NPA dropped to 2.8%. The bank expanded its deposit base to ₹22,054 crores with CASA deposits rising 15.1% YoY to ₹13,393 crores, maintaining an 83% CD ratio. Portfolio yield held steady at 15.6% QoQ. Leadership emphasized technology transformation and ESG progress with a '62-Strong' rating.

📊 Stock Analysis — UTKARSHBNK ✨ Ask AI About This

About Utkarsh Small Finance Bank Limited (UTKARSHBNK)

Financial Services · Banks · Listed on NSE

Market Cap: ₹2,646.15 Cr ROE: -34.1% ROCE: 11.6%

View full UTKARSHBNK stock details →

📡 Get AI alerts when UTKARSHBNK files next

Free • Daily 5 PM digest • Track filings, board meetings, and corporate actions

Track UTKARSHBNK — Free

💡 Ask AI about this filing

"How does the 51% secured loan share impact future risk and return?" "What is the outlook for NIM expansion beyond the current 6.1% level?" "When will the bank achieve sustained profitability after the current loss trajectory?"

Ask AI Free →

📊 More UTKARSHBNK filings

See all UTKARSHBNK filings →

🔥 Also filed on 1 August 2026

PNCINFRA PNC Infratech Limited Announcement LATENTVIEW Latent View Analytics Limited Financial Results NIITLTD NIIT Limited Announcement RVNL Rail Vikas Nigam Limited Annual Report RVNL Rail Vikas Nigam Limited Annual Report BILVYAPAR BIL VYAPAR LIMITED Announcement

View all today's announcements →

Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

📡 Get AI alerts when UTKARSHBNK files new disclosures

Track UTKARSHBNK filings, board meetings, and corporate actions. Free email alerts at 5 PM.