Utkarsh Small Finance Bank reports mixed Q2 FY26 performance with loan shifts

Utkarsh Small Finance Bank's gross loan portfolio saw a slight decline of 2.3% year-over-year (YoY) to ₹18,655 crore as of September 30, 2025, and a 3.0% quarter-over-quarter (QoQ) decrease. This was primarily driven by a significant 28.4% YoY drop in the JLG loan portfolio to ₹7,613 crore, although the non-JLG loan portfolio grew by 30.3% YoY to ₹11,042 crore.

Total deposits increased by 10.0% YoY to ₹21,447 crore, with CASA deposits growing 17.3% YoY to ₹4,478 crore. Retail term deposits also showed strong growth, rising 28.8% YoY to ₹12,257 crore. However, bulk term deposits decreased by 23.5% YoY to ₹4,712 crore. The CASA ratio stood at 20.9%, an improvement from 19.6% YoY. The CASA + retail term deposits ratio increased to 78.0% from 68.4% YoY.

The bank reported an X Bucket collection efficiency (excluding pre-payments) for its micro banking loan portfolio of 98.6% for Q2 FY26. Additionally, the liquidity coverage ratio (LCR) was strong at 219% as of September 30, 2025. This information is provisional and subject to review.