Utkarsh Small Finance Bank Q1FY26 Update: Loan Book Grows Marginally; JLG Portfolio Contracts 23%
By Shishta Dutta | Published at: Jul 5, 2025 03:03 PM IST
Varanasi, July 5, 2025: Utkarsh Small Finance Bank (NSE: UTKARSHBNK) released key provisional business updates for the quarter ended June 30, 2025, showing a mixed performance in its lending and deposit operations.
Key Financial Highlights (₹ in Crore)
| Particulars | Q1FY26 (Jun 30, 2025) | Q1FY25 (Jun 30, 2024) | YoY Change (%) | Q4FY25 (Mar 31, 2025) | QoQ Change (%) |
|---|---|---|---|---|---|
| Gross Loan Portfolio* | 19,224 | 18,798 | 2.3% | 19,666 | (2.2)% |
| JLG Loan Portfolio* | 8,578 | 11,160 | (23.1)% | 9,207 | (6.8)% |
| Non-JLG Loan Portfolio | 10,647 | 7,638 | 39.4% | 10,459 | 1.8% |
| Total Deposits | 21,489 | 18,163 | 18.3% | 21,566 | (0.4)% |
| CASA Deposits | 4,218 | 3,453 | 22.1% | 4,699 | (10.2)% |
| Retail Term Deposits | 11,675 | 8,729 | 33.7% | 10,635 | 9.8% |
| Bulk Term Deposits | 5,597 | 5,980 | (6.4)% | 6,232 | (10.2)% |
| CASA Ratio (%) | 19.6% | 19.0% | – | 21.8% | – |
| CASA + Retail Term Deposit Ratio | 74.0% | 67.1% | – | 71.1% | – |
*Includes IBPC issued by the Bank
Source: Company filing on July 5, 2025
Operational Metrics
- Micro Banking (JLG) Collection Efficiency: 98.7% (excluding prepayments) for Q1FY26.
- Liquidity Coverage Ratio (LCR): 238% as of June 30, 2025, indicating strong short-term liquidity buffer.
Summary
Despite a 2.3% YoY uptick in the overall loan book, the bank saw a sharp 23.1% decline in its JLG (Joint Liability Group) loan portfolio, signalling strategic de-risking or shifting focus. Meanwhile, the non-JLG loan portfolio surged 39.4% YoY, reflecting a deliberate move toward diversified secured lending.
Deposit mobilization remained strong on a YoY basis, rising 18.3%, led by a 33.7% jump in retail term deposits. However, CASA deposits declined 10.2% QoQ, impacting the CASA ratio which dipped to 19.6% from 21.8% in Q4FY25.
The bank also improved its retail deposit mix, with the CASA + Retail Term Deposit ratio rising to 74%, from 67.1% in the same quarter last year.
About the Company
Utkarsh Small Finance Bank Limited is a scheduled commercial bank headquartered in Varanasi, Uttar Pradesh. It is listed on NSE and BSE and primarily operates in micro banking, retail lending, and deposit services across underserved and semi-urban markets.
REF: https://nsearchives.nseindia.com/corporate/UTKARSHBANK_05072025131136_Updates.pdf
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