* Utkarsh Small Finance Bank Limited announced its unaudited financial results for the quarter and half year ended September 30, 2025, approved by the Board on November 14, 2025. * The Bank reported a Net Loss of ₹348 crore in Q2, FY26, compared to a Profit After Tax (PAT) of ₹51 crore in Q2, FY25. For H1, FY26, the net loss was ₹588 crore, against a PAT of ₹189 crore in H1, FY25. * Gross Loan Portfolio contracted by 2.3% year-on-year (YoY) to ₹18,655 crore as on September 30, 2025. * The share of secured lending increased significantly from 38% on September 30, 2024, to 47% on September 30, 2025. * Deposits grew by 10.0% YoY to ₹21,447 crore as on September 30, 2025, primarily driven by Retail Term Deposits (RTD) which grew by 28.8% YoY to ₹12,257 crore. * CASA deposits grew by 17.4% YoY to ₹4,482 crore, with the CASA ratio increasing to 20.9% from 19.6% a year ago. * Gross NPAs rose to 12.4% as on September 30, 2025, from 3.9% as on September 30, 2024. Net NPAs stood at 5.0% as on September 30, 2025, compared to 0.9% a year ago. * The Bank maintained comfortable capitalisation with CRAR at 17.21% and Tier 1 capital at 14.16% as on September 30, 2025. Additionally, the Bank successfully raised ₹950 crore through a rights issue in November 2025 to augment its Tier-1 capital base. * Mr. Govind Singh, MD & CEO, stated that Q2, FY26 marked a deliberate shift towards quality, prioritizing secured lending, recalibrating risk, and tightening execution to build resilience. He noted the strategic pivot towards more stable asset classes and a cautious stance in the unsecured micro-banking segment, which impacted short-term interest income but aligns with long-term asset quality goals. He emphasized FY26 as a year of recalibration, focusing on operational agility, prudent growth, and margin discipline for future momentum.
