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Informist, Friday, Nov. 14, 2025

 

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--Utkarsh Small Fin Bk Q2 net loss INR 3.48 bln vs PAT INR 513.91 mln yr ago 
--Utkarsh Small Fin Bk Q2 total income INR 9.37 bln vs INR 10.90 bln yr ago 
--Utkarsh Small Fin Bk Q2 provisions INR 4.62 bln vs INR 2.08 bln year ago 
--Utkarsh Small Fin Bk net NPA ratio 5.02% as on Sept 30 vs 5.0% qtr ago 
--Utkarsh Small Fin Bk gross NPA ratio 12.42% as on Sept 30 vs 11.42% qtr ago 
--Utkarsh Small Fin Bank capital adequacy ratio 17.21% as on Sept 30 
--Utkarsh Small Fin Bank H1 loss INR 5.88 bln vs PAT INR 1.89 bln year ago 
--Utkarsh Small Fin Bk H1 total income INR 19.56 bln vs INR 21.60 bln 

 

By Krity Ambey
 

NEW DELHI – Utkarsh Small Finance Bank Ltd.'s earnings were in the red for a second consecutive quarter. The lender reported a net loss in the September quarter as provisions doubled and income declined on year. 

 

Utkarsh Small Finance Bank reported a net loss of INR 3.48 billion for the September quarter, compared to a profit of INR 513.91 million in the corresponding quarter a year ago. Sequentially, the bank's loss widened from INR 2.40 billion in the June quarter. The bank's operating performance also faltered, swinging from an operating profit of INR 916 million in the trailing quarter to an operating loss of INR 33 million in the September quarter.

 

The bank's interest income fell 15% on year to INR 8.40 billion in the September quarter. This pulled the lender's total income down 14% on year to INR 9.37 billion. The bank's net interest income--the difference between interest earned and interest expended--for the quarter was INR 3.50 billion, 37% lower on year.

 

Utkarsh Small Finance Bank's provisions doubled to INR 4.62 billion in the reporting quarter from INR 2.08 billion in the corresponding quarter a year ago. Sequentially, the provisions rose 12%. 

 

The lender's asset quality worsened in the September quarter, with net non-performing assets ratio rising to 5.02% as of Sept. 30 from 5.00% on Jun. 30 and 0.89% on Sept. 30, 2024. Its gross non-performing asset ratio also worsened to 12.42% as on Sept. 30 from 11.42% at the end of the trailing quarter and 3.88% on Sept. 30, 2024. Its capital adequacy ratio, computed as per Basel II standardised approach for credit risk, was 17.21% as on Sept. 30.

 

The bank was in the red in the first half of the financial year with a net loss of INR 5.88 billion compared to a profit of INR 1.89 billion in the corresponding period a year ago. Its total income declined nearly 10% to INR 19.56 billion. The bank's provisions nearly tripled to INR 8.72 billion in Apr-Sept from INR 3.33 billion a year ago.

 

Utkarsh Small Finance Bank released its earnings for the September quarter after the market hours. On Friday, shares of the bank ended 2.5% higher at around INR 16 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

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