Utkarsh Small Finance Bank Shares Jump 7% As Q2 FY2026-2027 Disbursements Rise 55%

Utkarsh Small Finance Bank reported a 55% year-on-year rise in total disbursements to ₹3,525 crore in the July-September quarter of FY27, up from ₹2,275 crore a year earlier.

Utkarsh Small Finance Bank shares jumped 6.8% to ₹14.47 on the Bombay Stock Exchange (BSE) on Wednesday, 7 October 2026, after the provisional business update was released. The stock has remained under pressure over the longer term despite the latest rise. At 11:10 AM, it was trading at ₹14.06, up 3.84%, on the BSE.

What Did The Loan Book Show?

Utkarsh Small Finance Bank’s gross loan portfolio grew 7.5% year-on-year to ₹20,063 crore in Q2 FY27. On a quarterly basis, the portfolio increased 2.3%.

The mix of the loan book also changed during the quarter. The Joint Liability Group (JLG) portfolio fell 32.4% year-on-year to ₹5,146 crore, while the non-JLG portfolio rose 35.1% to ₹14,917 crore. As a result, the JLG-to-non-JLG portfolio mix shifted to 26:74 from 41:59 a year earlier.

The bank’s deposits rose 6.6% year-on-year to ₹23,869 crore. Current Account Savings Account (CASA) deposits increased 14.3% to ₹5,121 crore, taking the CASA ratio to 21.5% from 20% in Q2 FY26.

Retail term deposits also grew, while bulk term deposits declined during the quarter.

Disbursements also increased 4.6% sequentially from ₹3,370 crore in Q1 FY27. The strong growth in disbursements was largely driven by non-JLG loans. Non-JLG disbursements rose 94.2% year-on-year to ₹2,602 crore from ₹1,340 crore. They also increased 19.4% from the previous quarter.

JLG disbursements, on the other hand, fell 1.3% year-on-year to ₹923 crore. They were down 22.4% sequentially.

How Did The Stock Perform?

Despite Wednesday’s rise, the stock remains below its recent highs. It is more than 34% below its 52-week high of ₹22.02, recorded in October last year. The shares touched a 52-week low of ₹10.15 in March 2026.

The bank’s collection efficiency rate stood at 99.53%, while the Special Mention Account (SMA) ratio stood at 1.48%. The bank’s liquidity coverage ratio stood at 176% as of 30 September 2026.

Utkarsh Small Finance Bank’s Q2 FY27 numbers are provisional and require a review by the joint statutory auditors, as well as approval from the Audit Committee and the Board of Directors.

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