UTKARSH SMALL FIN BANK L

The earnings conference call for Utkarsh Small Finance Bank Limited on August 3, 2026, highlighted significant progress in various business dimensions during Q1 FY27. Management reported a 49% year-on-year growth in total disbursements, with JLG disbursements increasing by 5% and non-JLG disbursements by 93%. Asset quality indicators improved, with a GNPA ratio of 5.9%, a reduction of approximately 550 basis points year-on-year. The bank's focus on diversification was evident, with secured lending rising to 51% of the gross loan book. Management noted a net loss of INR 34 crores, a reduction of over 80% year-on-year. The bank plans to raise INR 500 crores through NCDs to support growth initiatives. Operational enhancements and technology investments were emphasized as key to improving efficiency and customer experience. Management expressed confidence in achieving a loan book growth of 25% to 30% and maintaining a NIM of around 8% by FY28.

Management emphasized improvements in business momentum and asset quality.