Utkarsh Small Finance Bank543942Quarterly results

Board approves Q2/H1 results; auditors' review unmodified; PAT line shows loss of Rs 6,985.22 lakh

Board approved unaudited results for the quarter and half year ended 30 September 2026.

By ScoutQuest · Tue 3 Nov 2026, 8:05 PM IST · 2 min read

Standalone · ₹ lakh · EPS in ₹
Line item	Latest	Year ago	YoY	Prev qtr	QoQ
Total income	1,00,228.06	93,731.76	+6.9%	1,00,237.22	0%
Profit before tax	(8,064.46)	(46,497.19)	+82.7%	(4,541.47)	−77.6%
Profit after tax	(6,985.22)	(34,846.47)	+80%	(3,391.97)	−106%
Basic EPS	(0.39)	(3.16)	+87.7%	(0.19)	−105%

Total income YoY change: Year ago 93,731.76 (+6.9%)
Period: For the quarter ended September 30, 2026

Auditor's review

Conclusion: Unmodified

Notes to the results

Reassessed CGFMU-covered NPA provision: provision for quarter and half year lower by ₹2,921.00 lakhs and ₹10,582.85 lakhs respectively; loss before tax lower by equivalent amount.
Revised Leave Policy (max EL accumulation cut from 45 to 30 days, no encashment on separation) resulted in reversal of leave liability provision of ₹2,561.47 lakhs.
Scheme of amalgamation of Utkarsh CoreInvest Limited (promoter) into the Bank pending before NCLT; matter fixed for hearing on November 19, 2026.
Issued lower tier II NCDs of ₹30,000 lakh on September 25, 2026 at premium of ₹26.40 lakh; redeemed debentures of ₹19,500 lakhs at par.

Board outcome

The Board of Directors approved the Bank's unaudited financial results for the quarter and half year ended 30 September 2026. The Audit Committee reviewed the results at its meeting on November 03, 2026 and recommended them for adoption.

Auditors' review conclusion

The statement was reviewed by M M Nissim & Co LLP and KKC & Associates LLP. Their conclusion is unmodified — nothing came to their attention that causes them to believe the statement contains any material misstatement, or that it has not been prepared in line with the relevant prudential norms on income recognition, asset classification and provisioning. A review gives moderate assurance, not the level of an audit, so no audit opinion is expressed.

Results lines to watch (Bank's own statement)

'Total Income' for the quarter: Rs 1,00,228.06 lakh.
'Net Profit for the period / year after tax': a loss of Rs 6,985.22 lakh for the quarter, printed in brackets.
'Provisions (other than tax) and contingencies' for the quarter: Rs 16,988.85 lakh.

Asset quality

Gross NPA: Rs 1,18,924.68 lakh; Net NPA: Rs 52,905.95 lakh.
'% of Gross NPA to Gross Advances': 5.96%.

The Bank's notes state that eligible cover under the Credit Guarantee Fund for Micro Units (CGFMU) was considered while determining provisioning on non-performing advances, which kept the provision for the quarter and half year lower than it would otherwise have been.

Capital and balance sheet

Capital Adequacy Ratio: 17.05%.
Deposits: Rs 23,86,935.30 lakh as at 30 September 2026.

Other updates in the update

Scheme of amalgamation of Utkarsh CoreInvest Limited, the promoter company, into the Bank: the NCLT has fixed the matter on November 19, 2026 and advised the parties to complete pleadings before that date, with a reply from the Income Tax authorities awaited.
The Bank redeemed non-convertible debentures during the half year and issued fresh ones on 25 September 2026.
Stressed loans were transferred to an Asset Reconstruction Company, with Security Receipts received as part of the consideration.
No equity shares were allotted on exercise of vested ESOPs during the quarter and half year.

How a retail reader can frame it

The profit line for the quarter is a loss, while the auditors' review conclusion is clean.
The asset-quality ratios and the capital ratio above are the numbers to track in coming quarters.
The amalgamation of the promoter company into the Bank is a corporate-structure event still before the NCLT.

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