Utkarsh Small Finance Bank Approves ₹300 Crore NCD Issue; Shares Fall 1.55%

Mumbai, September 11: Utkarsh Small Finance Bank Limited has approved a ₹300 crore issue of rated, listed, unsecured and subordinated Lower Tier II bonds in the form of non-convertible debentures, with the bank offering a base issue of ₹200 crore and a green shoe option of up to ₹100 crore.

The bank’s Board, at its meeting held on September 11, 2026, approved the proposed issuance of NCDs on a private placement basis to eligible investors.

According to the exchange filing, the issue will comprise up to 30,000 NCDs, each carrying a face value of ₹1 lakh. The base issue size is ₹200 crore, while the green shoe option can take the total issue size to ₹300 crore.

The proposed securities will be rated, listed, unsecured, subordinated and redeemable Lower Tier II bonds. The NCDs are proposed to be listed on the Wholesale Debt Market segment of BSE, subject to in-principle approval and other applicable regulatory requirements.

Stock Market Snapshot

The Utkarsh Small Finance Bank share price stood at ₹14.57, down ₹0.23 or 1.55%, as of 11:26:50 AM IST on September 11, 2026, according to the market data shown.

The stock traded around ₹14.50 to ₹14.60 for most of the morning. It remained below the ₹14.80 reference level shown on the chart, despite recovering slightly from its session lows.

The decline comes as the bank disclosed the Board’s approval for the proposed NCD issue.

NCDs To Carry Interest Of Up To 11.75%

The proposed NCDs will have a tenure of seven years from the deemed date of allotment.

The coupon or interest rate will be up to 11.75% per annum, payable annually. The exact terms of the issue will be governed by the final transaction documents and applicable regulatory requirements.

The securities will be unsecured, meaning the filing does not provide for a charge or security interest over the bank’s assets.

Private Placement To Eligible Investors

Utkarsh Small Finance Bank plans to raise the funds through a private placement to eligible investors.

The proposed issue follows the Board’s earlier approval on June 20, 2026, for the issuance of unsecured, subordinated, redeemable Tier II bonds in the form of NCDs within the bank’s approved borrowing limits.

The latest Board approval sets out the structure of the proposed issue, including the ₹200 crore base size, the additional ₹100 crore green shoe option and the seven-year tenure.

NCDs Proposed To Be Listed On BSE

The NCDs are proposed to be listed on the Wholesale Debt Market segment of BSE Limited.

The filing states that the proposed securities will be rated and will qualify as Lower Tier II bonds. The issue remains subject to receipt of in-principle approval from BSE and any other statutory or regulatory approvals that may be required.

The bank has also disclosed that there are no reported delays or defaults in payment of interest or principal for a period exceeding three months.

Utkarsh Small Finance Bank Strengthens Debt Funding Base

Utkarsh Small Finance Bank operates as a small finance bank, providing banking and financial services across lending and deposit products.

For banks, Tier II instruments can form part of regulatory capital subject to applicable requirements. The proposed NCD issue therefore provides the bank with an additional avenue to raise long-term funds through the debt market.

The latest proposal does not represent an equity issue. The securities are debt instruments with a defined tenure and interest payment structure.

Conclusion

Utkarsh Small Finance Bank has approved a proposed ₹300 crore issue of Lower Tier II NCDs through private placement to eligible investors.

The issue comprises a ₹200 crore base size and a green shoe option of up to ₹100 crore. Up to 30,000 NCDs with a face value of ₹1 lakh each will be issued, with a seven-year tenure and interest of up to 11.75% per annum, payable annually.

The NCDs will be unsecured and are proposed to be listed on the Wholesale Debt Market segment of BSE, subject to the required approvals.

Meanwhile, the Utkarsh Small Finance Bank share price stood at ₹14.57, down ₹0.23 or 1.55%, as of 11:26:50 AM IST on September 11, 2026.

Source:

• https://www.nseindia.com/get-quote/equity/UTKARSHBNK/Utkarsh-Small-Finance-Bank-Limited
• https://nsearchives.nseindia.com/corporate/UTKARSHBANK_11092026111107_OutcomeofmeetingissueofNCDs1.pdf