Utkarsh Small Finance Bank jumps as Q2 disbursements jump 55% YoY
A JLG is a small group of borrowers who take loans individually but provide a form of mutual guarantee for each other. It is commonly used in microfinance.
The gross loan portfolio stood at Rs 20,063 crore as of 30 September 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% YoY to Rs 5,146 crore, while the non-JLG portfolio increased 35.1% to Rs 14,917 crore.
The portfolio mix shifted towards non-JLG lending, with the JLG-to-non-JLG mix at 26:74 in Q2 FY27 compared with 41:59 a year earlier. The secured-to-unsecured portfolio mix also improved to 52:48 from 47:53 a year earlier.
Total deposits increased 6.6% YoY to Rs 23,869 crore and 3.3% QoQ. CASA deposits rose 14.3% YoY to Rs 5,121 crore, while retail term deposits increased 11.8% to Rs 14,442 crore. Bulk term deposits declined 13.5% to Rs 4,307 crore.
The CASA ratio improved to 21.5% in Q2 FY27 from 20% a year earlier, while the CASA plus retail term deposits ratio stood at 82%, compared with 77.8% in Q2 FY26.
The bank's X-bucket collection efficiency stood at 99.53% in Q2 FY27, compared with 98.62% in the year-ago quarter and 99.63% in Q1 FY27.
X-bucket collection efficiency represents the proportion of the current month's EMI dues collected from accounts that had no overdue amount at the end of the previous month.
The Special Mention Account (SMA) pool stood at 1.48%, compared with 4.87% a year earlier and 1.20% in the previous quarter. These are loans showing signs of repayment stress but that have not yet become non-performing assets (NPAs).
Utkarsh Small Finance Bank's liquidity coverage ratio (LCR) stood at 176% as of 30 September 2026.
The Q2 FY27 figures are provisional and subject to review by the joint statutory auditors and approval by the audit committee and board of directors.
Utkarsh Small Finance Bank, incorporated in April 2016 and headquartered in Varanasi, Uttar Pradesh, provides banking and financial services focused on underserved and unserved sections, with its micro-banking activities primarily concentrated in rural and semi-urban areas.
On a standalone basis, Utkarsh Small Finance Bank's total income declined 1.60% year-on-year to Rs 1,002.37 crore in Q1 FY27, while net interest income increased 5.04% to Rs 422.07 crore. The bank's net loss narrowed to Rs 33.92 crore from Rs 239.48 crore in Q1 FY26.
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