Utkarsh Small Finance Bank Q2 disbursements jump 55% YoY to Rs 3,525 crore; loan portfolio rises over 7%

Utkarsh Small Finance Bank reported a 54.9% year-on-year increase in total disbursements to Rs 3,525 crore for the quarter ended September 30, 2026, according to its provisional business update announced after market hours on Tuesday.

Total disbursements stood at Rs 2,275 crore in Q2 FY26 and Rs 3,370 crore in Q1 FY27, translating into a 4.6% quarter-on-quarter increase.

Non-JLG disbursements rose 94.2% year-on-year to Rs 2,602 crore from Rs 1,340 crore in Q2 FY26 while increasing 19.4% from Rs 2,180 crore in Q1 FY27. JLG disbursements stood at Rs 923 crore, down 1.3% year-on-year and 22.4% quarter-on-quarter.

The bank's gross loan portfolio stood at Rs 20,063 crore as of September 30, 2026, up 7.5% from Rs 18,655 crore a year earlier and 2.3% from Rs 19,610 crore in Q1 FY27.

The JLG loan portfolio declined 32.4% year-on-year to Rs 5,146 crore and was down 6.1% quarter-on-quarter. The non-JLG loan portfolio rose 35.1% year-on-year to Rs 14,917 crore and increased 5.6% from Rs 14,130 crore in Q1 FY27.

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The JLG-to-non-JLG portfolio mix stood at 26:74 in Q2 FY27, compared with 41:59 in Q2 FY26 and 28:72 in Q1 FY27.

The micro-banking-to-non-micro-banking mix stood at 37:63, compared with 44:56 a year earlier and 37:63 in the previous quarter. The secured-to-unsecured mix stood at 52:48, against 47:53 in Q2 FY26 and 51:49 in Q1 FY27.

On the deposits front, total deposits rose 6.6% year-on-year to Rs 23,869 crore and 3.3% quarter-on-quarter from Rs 23,107 crore. CASA deposits increased 14.3% year-on-year to Rs 5,121 crore and 5.2% from Q1 FY27.

Retail term deposits stood at Rs 14,442 crore, up 11.8% year-on-year and 1.3% quarter-on-quarter. Bulk term deposits stood at Rs 4,307 crore, down 13.5% year-on-year but up 8.2% sequentially.

The CASA ratio stood at 21.5%, compared with 20.0% in Q2 FY26 and 21.1% in Q1 FY27. The CASA plus retail term deposits ratio stood at 82.0%, against 77.8% a year earlier and 82.8% in the previous quarter.

The bank's X-bucket collection efficiency stood at 99.53% in Q2 FY27, compared with 98.62% in Q2 FY26 and 99.63% in Q1 FY27. The SMA pool stood at 1.48%, against 4.87% a year earlier and 1.20% in the preceding quarter.

The Liquidity Coverage Ratio (LCR) stood at 176% as of September 30, 2026.

Shares of Utkarsh Small Finance Bank settled at Rs 13.52 apiece on the NSE on Tuesday, up 2.27% from the previous close of Rs 13.22. The stock moved in a range of Rs 13.27-Rs 13.62 during the session.

At the current market price, the lender's market capitalisation stood at Rs 2,405.92 crore. The stock has a 52-week range of Rs 10.12-Rs 22.03.

Utkarsh Small Finance Bank said all eligible micro-banking disbursements with effect from January 17, 2025 are covered under the CGFMU Scheme.

The bank said the information with reference to Q2 FY27 is provisional and subject to review by the Joint Statutory Auditors and approval by the Audit Committee and Board of Directors.

Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
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