Shares of Utkarsh Small Finance Bank jumped 7% to ₹14.47 on the BSE on Wednesday after the company released its provisional business update for Q2 FY27, reporting a 55% year-on-year rise in total disbursements to ₹3,525 crore. According to LiveMint, the sharp surge in disbursements was driven by a 94.2% YoY surge in non-Joint Liability Group (JLG) loans to ₹2,602 crore, while JLG loans declined 1.3% YoY to ₹923 crore during the quarter. The positive market response reflects investor confidence in the bank's strong lending momentum and improved portfolio composition, with the bank noting that all eligible micro-banking disbursements with effect from January 17, 2025 are covered under the CGFMU Scheme.
The bank's gross loan portfolio stood at ₹20,063 crore, representing a 7.5% year-on-year and 2.3% sequential increase from ₹19,610 crore in Q1 FY27. As reported by LiveMint, the non-JLG loan portfolio increased substantially by 35.1% year-on-year to ₹14,917 crore, while the JLG loan portfolio declined 32.4% to ₹5,146 crore. The JLG-to-non-JLG portfolio mix improved to 26:74 compared with 41:59 a year ago and 28:72 in the previous quarter. The micro-banking-to-non-micro-banking mix stood at 37:63, compared with 44:56 a year ago and 37:63 in Q1 FY27. The secured-to-unsecured portfolio mix stood at 52:48, compared with 47:53 a year ago and 51:49 in the previous quarter.
Total deposits increased 6.6% year-on-year to ₹23,869 crore and were up 3.3% sequentially from ₹23,107 crore, according to the bank's business update. CASA deposits rose 14.3% year-on-year to ₹5,121 crore and increased 5.2% from Q1 FY27. Retail term deposits stood at ₹14,442 crore, up 11.8% year-on-year and 1.3% quarter-on-quarter. Bulk term deposits declined 13.5% year-on-year but increased 8.2% sequentially to ₹4,307 crore. The CASA ratio stood at 21.5%, compared with 20% a year ago and 21.1% in the previous quarter. The CASA plus retail term deposits ratio was 82%, against 77.8% a year earlier and 82.8% in the previous quarter, indicating stronger low-cost deposit mobilisation despite moderate overall funding growth.
Utkarsh Small Finance Bank's X-bucket collection efficiency stood at 99.53% in Q2 FY27, compared with 98.62% in Q2 FY26 and 99.63% in Q1 FY27, as reported by LiveMint. The special mention account (SMA) pool stood at 1.48%, compared with 4.87% a year ago and 1.20% in the previous quarter. The bank's liquidity coverage ratio (LCR) stood at 176% as of September 30, 2026. The Q2 FY27 business update is provisional and subject to review by the Joint Statutory Auditors and approval by the Audit Committee and Board of Directors.
The stock soared as much as 6.8% to its day's high of ₹14.47 per share on BSE, though it remains 34% away from its 52-week high of ₹22.02 hit in October last year. According to LiveMint, the bank stock has been volatile in recent times, down over 7% in 1 month and 4.5% in 3 months, but rose 17% in the last 6 months despite being down around 25% in the past 1 year. The company has a market capitalisation of nearly ₹2,406 crore. The positive Q2 performance comes amid broader market challenges, with the bank's ability to maintain strong disbursement growth and improve portfolio composition providing a bright spot in its operational performance.
