Utkarsh Small Finance

Utkarsh Small Finance Bank reported a net loss of ₹188 croreCurrent reported value: ₹188 crore. No comparable prior figure is available in the source record. in Q4 FY26, driven by elevated provisions for legacy stress in the MFI portfolio. However, the quarter showed clear green shoots: JLG disbursements grew 58% QoQCurrent 58% QoQ. Reported change: +58% QoQ., collection efficiency improved to 99.7%Current 99.7%. Reported change: +120bps YoY., and GNPA fell 330 bps QoQCurrent reported value: 330 bps QoQ. No comparable prior figure is available in the source record. to 7.7%. The bank is structurally derisking by reducing JLG exposure to 28% of loans (from 88% in FY20) and growing secured lending to 51%Current 51%. Reported change: +800bps YoY. of the book. Management guided for 25-30% loan growthCurrent reported value: 25-30% loan growth. No comparable prior figure is available in the source record. in FY27, with secured lending reaching 55% of portfolio, NIM above 8%, and ROE of 15% by FY28. Credit cost is expected to moderate to ~3% in FY27 and 2-2.5% in FY28. Key risk: legacy MFI stress may persist for another quarter, and the bank's ability to sustain collection efficiency while scaling disbursements remains untested.