Utkarsh SFB Q3 FY26 Crisis: Massive ₹3.75 Bn Loss, GNPA Soars to 11.05% on Sky-High Provisions

Utkarsh Small Finance Bank Ltd, focused on underserved rural India, reported challenging Q3 FY26 results on Feb 2, 2026, with a staggering ₹3.75 billion net loss driven by ₹4.46 billion provisions. Interest income held at ₹8.21 billion, but asset quality deteriorated with GNPA at 11.05%.

This follows Q2's ₹348 Cr loss and H1 ₹588 Cr cumulative, amid deliberate JLG loan shrinkage (-34% YoY to ₹6,419 Cr) favoring secured non-JLG (+27% to ₹11,888 Cr). Gross loans contracted 3.9% YoY to ₹18,306 Cr, reflecting risk recalibration post-regulatory guardrails on microfinance.

Deposits grew steadily 4.5% YoY to ₹21,087 Cr, with CASA up 16.1% and ratio at 21.9%; LCR at 200% ensures liquidity. MD Govind Singh emphasized shift to quality assets, operational agility for FY26 turnaround. Shares at ~₹16-24 range reflect pressures (mcap ~₹2,400 Cr).

Key Highlights

• Net Loss: ₹3.75 billion after tax for Q3 FY26.
• ​Provisions: ₹4.46 billion for contingencies.
• ​Interest Earned: ₹8.21 billion.
• ​Gross NPA: 11.05% (up from 12.42% prior QoQ trends).
• ​Loan Portfolio: ₹18,306 Cr (-3.9% YoY; JLG -34%, Non-JLG +27%).
• Deposits: ₹21,087 Cr (+4.5% YoY); CASA ratio 21.9%.
• ​Collection Efficiency: 99.1% for micro loans; LCR 200%.

​
Strategic pivot signals long-term resilience despite short-term pain.

Sources: MarketScreener, Prysm, MarketsMojo, Screener.in