Utkarsh Small Finance Bank Ltd

ESG rating update

• ESG risk score 63 assigned to Utkarsh Small Finance Bank Ltd by ESG Risk Assessments and Insights Limited.
• Based on publicly available information, report received on August 20, 2026 at 04:26 p.m. IST.
• Disclosure will be available on the Bank's website.

Core Banking Migration

• Downtime for Core Banking migration scheduled Aug 21, 2026 10:00 PM to Aug 24, 2026 6:00 AM.
• All banking services will be unavailable during the downtime.
• Migration aims to enhance customer experience through technology modernization.
• Comprehensive migration plan includes risk mitigation, business continuity arrangements, and customer communications.
• Disclosure will be published on Utkarsh Small Finance Bank's website.

ESG rating update

• SES ESG Research Pvt. Ltd. assigned ESG score of 71.80 to Utkarsh Small Finance Bank.
• Rating received on August 16, 2026 at 08:41 p.m. IST.
• Disclosure will be published on the Bank's website.
• No material financial impact disclosed.

Meeting Details

• Date: July 21, 2026; time and venue not disclosed.

Key Agenda Items

• Approve supplementary Debenture Trust Deed to amend call option, early redemption terms for ₹195 crore Tier II NCDs.

Other Notes

• RBI approval received; outcome will be intimated and disclosed on the Bank's website.

Rating action details

• Instrument: Subordinated debt; Amount: Rs 200 crore; Rating: CARE A-; Outlook: Stable.
• Rating agency: CARE Ratings Limited (CARE).
• Rationale: Weaker profitability and asset-quality stress as of 31 March 2026.
• Material change: Downgrade from CARE A with Negative outlook to CARE A-; Stable.
• Financial highlights: Profitability pressure and asset-quality stress cited in rationale.

Overview

• Standalone financial statements for year ended March 31, 2026.
• Core activities: micro-banking, MSME, housing, and CV/CE financing.
• Outlets: 1,110.

Key ESG Risks & Opportunities

• SEBI settlement: ₹1.24 crore paid in 2025; fully settled.
• Amalgamation with Utkarsh CoreInvest; NCLT hearings scheduled for 2026.

Governance & Policy Highlights

Social Responsibility & Workforce

• CSR spend: ₹8.16 crore.

Environmental Performance

• GHG emissions (Scope 1+2): 10,810 tCO2e.

Stakeholder Engagement & Complaints

• Ombudsman cases: 919.

Other Notable Metrics

• Rights issue raised ₹949.08 crore.
• Policy shift on loan processing fees increased 2025 other income by ₹164.66 crore.

Dematerialisation/rematerialisation status

• Period covered: April 01, 2026 to June 30, 2026.
• Details of dematerialised/rematerialised securities furnished to all stock exchanges.

Key quarterly metrics

• Total disbursements: ₹3,370 crore in Q1 FY27; YoY +48.5%.
• JLG disbursements ₹1,190 crore; YoY +4.5%.
• Non-JLG disbursements ₹2,180 crore; YoY +92.9%.
• Gross loan portfolio ₹19,612 crore; QoQ +1.4%, YoY +2.0%.
• JLG loan portfolio ₹5,480 crore; YoY -36.1%, QoQ -5.3%.
• Non-JLG loan portfolio ₹14,132 crore; YoY +32.7%, QoQ +4.3%.
• Total deposits ₹22,053 crore; YoY +2.6%, QoQ +1.8%.
• LCR stood at 223% as of June 30, 2026.
• Q1 FY27 numbers are provisional pending audit and Board approval.