Utkarsh Small Finance Bank Share Price Fell 15% As Q3 FY25 Net Loss Stood at ₹168 crore

Utkarsh Small Finance Bank share price plummeted nearly 15% on Monday, February 17, after the company reported a net loss of ₹168 crore for the third quarter of FY25. This marks a stark contrast to the net profit of ₹116 crore reported in the same quarter last year.

On February 17, 2025, the stock opened the trading session 13.51% lower at ₹24.31 per share and continued to slide, eventually touching an all-time low of ₹23.90, a loss of 14.97% by the end of the day.

Utkarsh Small Finance Bank Q3 FY25 Performance

The bank’s net interest income showed a marginal decline of 0.5%, falling to ₹480 crore in Q3 FY25 from ₹482 crore in the corresponding period last year.

The company’s overall asset quality also worsened significantly, with gross non-performing assets (NPAs) rising to 6.17% from 3.88% in the September quarter. The net NPA stood at 2.5%, a substantial increase from 0.89% in the previous quarter.

Despite these setbacks, Utkarsh Small Finance Bank reported a 16.2% growth in its gross loan portfolio, which reached ₹19,057 crore. The share of secured loans in the total loan portfolio increased to 41%, up from 38% as of September 30, 2024, and 34% as of March 31, 2024.

Challenges in Micro-Banking Lending

Govind Singh, MD and CEO of Utkarsh Small Finance Bank acknowledged that the operating environment for micro-banking lending remained challenging in Q3 FY25. This was primarily due to tightened credit supply to micro-banking borrowers following the implementation of guardrail norms.

Singh further explained that these norms had impacted disbursements, though he emphasised that they are a structurally positive step for the sector, with benefits expected to materialise soon.

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