Utkarsh SFB Q4 FY26: Net Loss Narrows to ₹188 Cr, Loan Portfolio Grows 5.6%
Utkarsh Small Finance Bank reported a net loss of ₹188 crore for Q4 FY26, down from ₹375 crore in Q3 FY26. Gross Loan Portfolio grew 5.6% QoQ to ₹19,332 crore, with secured lending at 51%. Deposits reached ₹21,654 crore, and CASA ratio improved to 24%. The bank raised ₹950 crore via rights issue in Nov 2025.
The reduction in net loss and growth in secured lending are positive developments. However, the overall net loss for the year and the YoY contraction in the loan portfolio indicate a medium impact.
The bank reported a reduced net loss, which is positive. However, it is still a loss, and the loan portfolio contracted YoY, indicating a neutral overall sentiment.
Utkarsh Small Finance Bank Limited announced its audited financial results for the quarter and financial year ended March 31, 2026. The Board of Directors approved these results in a meeting held on May 09, 2026.
Key highlights for the fourth quarter of FY26 include a 46.1% quarter-on-quarter growth in disbursements, with JLG disbursements increasing by 58.2% and non-JLG disbursements by 40.6%. The Gross Loan Portfolio grew by 5.6% QoQ to ₹19,332 crore, with the share of secured lending rising to 51% from 43% a year prior. Deposits saw a 2.7% QoQ increase, reaching ₹21,654 crore, and the CASA ratio improved to 24% from 22% in the previous quarter. The bank operates across 27 States & UTs with 1,110 branches.
For Q4 FY26, the bank reported a net loss of ₹188 crore, a significant reduction from the ₹375 crore loss in Q3 FY26. For the full financial year FY26, the net loss was ₹1,151 crore, compared to a profit after tax (PAT) of ₹24 crore in FY25.
Mr. Govind Singh, MD & CEO, highlighted the strategic recalibration towards portfolio quality and secured assets, despite residual MFI stress. He noted improved disbursements, a strengthened JLG X-bucket collection efficiency of 99.7% in March 2026, and a material decline in fresh NPA slippages to approximately ₹170 crore in Q4 FY26 from ₹710 crore in Q4 FY25. The Gross NPA ratio improved QoQ to 7.7% as of March 2026. The bank also focused on de-risking unsecured exposure and pivoting to secured portfolios, with non-JLG portfolios showing robust momentum. Deposits mobilization remained a focus, with the CASA + RTD ratio strengthening to 83% from 71% a year ago, and the cost of funds declining by over 45 bps YoY. The bank registered with CGFMU for credit-guarantee coverage. Technology investments under Utkarsh 2.0 are enhancing productivity and risk control. Following a successful ₹950 crore rights issue in November 2025, the capital position remains satisfactory, with Tier-1 capital significantly strengthened. The bank aims to sustain improved collections, continue calibrated disbursements into higher-quality segments, deepen secured lending, and accelerate liability mobilization.
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