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Utkarsh Small Finance Bank Ltd

| Statement of Audited Financial Results for the Quarter and Year Ended March 31, 2026

Report Source

⬤9th May 26

Summary : Utkarsh Small Finance Bank reported significant net losses and high NPAs for FY26, amidst board changes and an ongoing amalgamation process with an unmodified audit opinion.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Interest Expended: 46,064.85 lakh (Q4 FY26), 1,90,203.83 lakh (FY26)
  2. Operating Expenses: 47,911.27 lakh (Q4 FY26), 1,85,135.88 lakh (FY26)
  3. Provisions: 24,439.30 lakh (Q4 FY26), 1,56,296.34 lakh (FY26)
  4. Interest Earned: 83,675.46 lakh (Q4 FY26), 3,37,878.04 lakh (FY26)
  5. Other Income: 11,531.56 lakh (Q4 FY26), 43,096.65 lakh (FY26)
  6. Segmental Revenue: Retail, Wholesale, Treasury
  7. Net cash flow from operating activities: 78,069.15 lakh (FY26)
  8. Net cash flow used in investing activities: (3,30,857.64) lakh (FY26)
  9. Net cash flow from financing activities: 1,41,249.27 lakh (FY26)
  10. Total Assets: 28,86,907.41 lakh (March 31, 2026)
  11. Total Liabilities: 28,86,907.41 lakh (March 31, 2026)
  12. Deposits: 21,65,398.04 lakh (March 31, 2026)
  13. Advances: 18,06,958.90 lakh (March 31, 2026)
  14. Capital: 1,77,952.37 lakh (March 31, 2026)
  15. Consolidation not applicable as no subsidiary/associate/joint venture

Corporate Overview

  1. Operations across India
  2. Registered office in Varanasi, Uttar Pradesh
  3. Significant net loss for the quarter and full financial year
  4. High Gross and Net Non-Performing Assets
  5. Small Finance Bank operations
  6. Lending and deposit-taking activities
  7. Retail customers
  8. Wholesale customers
  9. Retail Banking
  10. Wholesale Banking
  11. Treasury Operations
  12. Amalgamation scheme with promoter company (UCL)

Risk Factors

  1. Significant net loss for quarter and year
  2. High Gross and Net NPA ratios
  3. Ongoing NCLT process for amalgamation
  4. Impact of new labor codes on expenses

Key Drivers

  1. Unmodified audit opinion on financial results
  2. Amalgamation scheme with promoter company
  3. Appointment of key senior management
  4. Successful completion of Right Issue

Auditor’s Report

  1. Unmodified opinion
  2. Assessment of going concern basis
  3. Evaluation of internal financial controls
  4. Appropriateness of accounting policies and estimates

Board Commentary

  1. Re-appointment of Mr. Parveen Kumar Gupta as Independent Director
  2. Appointment of Mr. Anjani Kumar Srivastava as Additional Director
  3. Appointment of new Chief Human Resources Officer, Head-Assets, Chief Credit Officer
  4. Compliance with SEBI Listing Regulations
  5. Compliance with RBI guidelines
  6. Amalgamation scheme with Utkarsh CoreInvest Limited (UCL)
  7. Completed Right Issue of equity shares

Corporate Governance

  1. Mr. Parveen Kumar Gupta re-appointed as Independent Director
  2. Nomination and Remuneration Committee (NRC)
  3. Audit Committee

Management Discussion & Analysis

Future Strategy

  1. Pursuing amalgamation with Utkarsh CoreInvest Limited
  2. Strengthening senior management team

Performance Drivers

  1. Interest earned on advances and investments
  2. Other income generation
  3. Managing interest expended and operating costs

Critical Risks

  1. Sustained net losses impacting profitability
  2. High non-performing assets (NPA) levels
  3. Regulatory and legal risks from amalgamation process
  4. Impact of new labor codes on expenses