Utkarsh SFB Q3 FY26 Business Update: Loan Portfolio Down 3.9%, Deposits Up 4.5%
Utkarsh Small Finance Bank reported provisional Q3 FY26 business updates. Gross loan portfolio decreased 3.9% YoY to ₹18,306 crore, while total deposits grew 4.5% YoY to ₹21,087 crore. CASA deposits increased 16.1% YoY. Collection efficiency was 99.1% and LCR stood at 200% as of December 31, 2025.
The changes in loan portfolio and deposit composition are significant and could impact the bank's profitability and growth trajectory. The improved CASA ratio and collection efficiency are positive indicators, but the overall loan book contraction warrants attention.
The announcement provides a mixed bag of business updates. While deposits and CASA ratio have improved, the gross loan portfolio and JLG loan portfolio have seen a decline. The overall impact is neutral as there are both positive and negative trends.
Utkarsh Small Finance Bank Limited has released its business updates for the quarter and nine months ended December 31, 2025. The Gross Loan Portfolio stood at ₹18,306 crore, a decrease of 3.9% year-on-year and 1.9% quarter-on-quarter. The JLG Loan Portfolio saw a significant drop of 34.1% year-on-year to ₹6,419 crore, while the Non-JLG Loan Portfolio increased by 27.5% year-on-year to ₹11,888 crore.
Total Deposits grew by 4.5% year-on-year to ₹21,087 crore, with CASA Deposits rising 16.1% to ₹4,611 crore and Retail Term Deposits up 23.8% to ₹12,586 crore. Bulk Term Deposits, however, decreased by 35.6% year-on-year to ₹3,890 crore.
The CASA Ratio improved to 21.9% from 19.7% in the previous year, and the CASA + Retail Term Deposits Ratio increased to 81.6% from 70.1%. The X Bucket Collection efficiency for the Bank’s Micro Banking loan portfolio was 99.1% for Q3 FY26. The Liquidity Coverage Ratio (LCR) was reported at 200% as of December 31, 2025.
This information is provisional for Q3 FY26 and is subject to review by the Joint Statutory Auditors and approval from the Audit Committee and Board of Directors. The disclosure will also be available on the bank's website.
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