Utkarsh Small Finance Bank reported a 4.5% year-on-year rise in total deposits as of December 31, 2025, reflecting steady customer confidence. However, its gross loan portfolio fell 3.9% year-on-year to ₹183.06 billion, highlighting cautious lending trends. The mixed performance underscores both resilience in deposits and challenges in credit expansion.
Utkarsh Small Finance Bank Ltd has released provisional figures for the quarter ended December 31, 2025, showing contrasting trends in deposits and loan growth. While deposits continued to rise, the bank’s loan portfolio contracted, signaling a shift in lending dynamics amid evolving market conditions.
Key Highlights:
-
Deposits Growth: Total deposits increased 4.5% year-on-year as of December 31, 2025.
-
Loan Portfolio: Gross loan portfolio declined 3.9% year-on-year, standing at ₹183.06 billion.
-
Customer Confidence: Deposit growth reflects sustained trust in the bank’s savings and term deposit products.
-
Credit Trends: The fall in loan portfolio suggests cautious disbursement strategies, possibly influenced by asset quality considerations and macroeconomic factors.
-
Strategic Outlook: The bank is expected to balance deposit mobilization with prudent lending to maintain financial stability.
This performance highlights Utkarsh Small Finance Bank’s ability to attract deposits even as it recalibrates its loan book. The contrasting trends point to a conservative approach in credit expansion while reinforcing liquidity strength.
Sources: Business Standard, Utkarsh Bank Investor Presentation, BrightStake