Utkarsh Small Finance Bank announced Q1FY26 results Deposits grew by 18.3% YoY to Rs 21,489 crore as on June 30, 2025, led by growth in retail term deposits. The Bank continues to focus on building granular liabilities franchise, Bank’s retail term deposits grew by 33.7% YoY to Rs 11,675 crore & CASA deposits grew by 22.5% YoY to Rs 4,229 crore as on June 30, 2025. CASA deposits ratio increased to 19.7% as on June 30, 2025 from 19.0% as on June 30, 2024. Bank’s CD ratio improved to 83.4% as on June 30, 2025 vs 92.7% as on June 30, 2024. Bank’s loan Portfolio grew by 2.3% YoY to Rs 19,224 crore as on June 30, 2025. The share of secured loans in overall portfolio increased to 45% as on June 30, 2025 from 35% as on June 30, 2024. Gross NPAs were 11.42% as on June 30, 2025 vs 9.43% as on March 31, 2025 (2.78% as on June 30, 2024). Net NPAs were 5.00% as on June 30, 2025 vs 4.84% as on March 31, 2025 (0.26% as on June 30, 2024). Comfortable capitalisation with CRAR at 19.64% and Tier 1 capital at 16.71% as on June 30, 2025. Bank’s pre-provision operating profit (PPoP) was at Rs 92 crore in Q1FY26 vs Rs 311 crore in Q1FY25. During Q1FY26, the Bank reported net loss of Rs 239 crore vs PAT of Rs 137 crore in Q1FY25. Govind Singh, MD & CEO, Utkarsh Small Finance Bank said: “During Q1FY26, the Bank continued its strategic pivot towards secured lending, amid difficult operating environment. Our non-JLG loan portfolio sustained strong momentum, growing 39% YoY. Consequently, the share of secured loans within the overall book rose to 45% as of June 30, 2025 – up from 35% as of June 30, 2024 – underscoring our focused efforts toward portfolio de-risking and improving asset quality. Healthy business growth driven by Yield optimization efforts in secured products i.e. disbursement yields rising in housing & MSME loans by 40–150 bps compared to Q1FY25. We have also adopted a prudent stance on new sourcing in the unsecured micro-banking segment due to recent stress indicators. This measured approach has impacted short-term interest income but is aligned with our long-term asset quality goals. The JLG loan portfolio contracted during the quarter, largely owing to tightened guard-rail norms which limited on-ground credit flow, though, there is reduction in microfinance borrower leverage levels. On the deposits front, in a declining interest rate scenario, our deposit base expanded 18.3% YoY to Rs 21,489 crore as on June 30, 2025, primarily fueled by strong momentum in retail term deposits. As the newly launched branches build maturity and traction, we are working towards margin improvement and overall business scalability in the coming quarters." Result PDF