Utkarsh Small Finance Bank Share Price Rises 3%; Reports Net Loss in Q2 FY26 Results

Utkarsh Small Finance Bank Limited announced its financial performance for the quarter and half year ended September 30, 2025, following the Board’s approval on November 14, 2025. 

Performance Overview

The bank’s gross loan portfolio contracted by 2.3% year-on-year to ₹18,655 crore. However, the shift toward secured lending continued, with its share rising from 38% in September 2024 to 47% in September 2025. 

This strategic shift is aimed at strengthening asset quality over the medium term. Utkarsh SFB maintains a wide presence across 27 states and union territories through 1,104 branches.

Deposit Growth and Liability Mix

Total deposits rose by 10% year-on-year to ₹21,447 crore, driven primarily by robust retail term deposit growth of 28.8%. CASA deposits increased by 17.4% to ₹4,482 crore, improving the CASA ratio to 20.9% from 19.6% a year earlier. 

A notable improvement was the fall in institutional term deposits, which reduced from 31.6% to 21.9%, indicating the bank’s deepening focus on building a granular and stable liability franchise. The credit-deposit ratio improved significantly to 78.8% from 93% last year.

Asset Quality and Profitability

Asset quality remained under strain, with gross NPAs rising sharply to 12.4% compared to 3.9% in September 2024. Net NPAs stood at 5%. This deterioration has weighed heavily on profitability. 

The bank reported a pre-provision operating profit of ₹88 crore in H1 FY26, down from ₹588 crore in H1 FY25. It reported a net loss of ₹588 crore in H1 FY26, with a Q2 FY26 loss of ₹348 crore compared to a profit of ₹51 crore in the same period last year.

Capital Position

Utkarsh SFB remains adequately capitalised, with a CRAR of 17.21% and Tier-1 capital of 14.16% as of September 30, 2025. The bank strengthened its capital base further by raising ₹950 crore through a rights issue in November 2025.

Utkarsh Small Finance Bank Share Price Performance

On November 17, 2025, Utkarsh Small Finance Bank share price (NSE: UTKARSHBNK) opened at ₹16.00, the same as its previous close of ₹16.30. At 11:06 AM, the share price of Utkarsh Small Finance Bank was trading at ₹16.86, up by 3.44% on the NSE.

Also Read: Utkarsh Small Finance Bank to Raise Up To ₹950 Crore!

Conclusion

Utkarsh Small Finance Bank’s financial performance reflects a challenging operating environment marked by asset quality stress and subdued credit growth. 

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