Utkarsh Small Finance Bank disbursements rise 55%

Utkarsh reported total disbursements of Rs 3,525 crore for the July-September quarter, up from Rs 2,275 crore a year earlier and nearly 5% higher than the previous quarter’s Rs 3,370 crore. The sharp increase was led by non-Joint Liability Group loans, which surged 94% year on year to Rs 2,602 crore.

JLG loans, typically extended to informal groups of four to 10 borrowers, slipped a little over 1% to Rs 923 crore. That mix suggests the bank is leaning more heavily on individual and other non-JLG lending, which can improve growth but also changes the portfolio profile investors will parse for asset quality and margin trends.

Deposits rose 7% year on year to Rs 23,869 crore, slower than disbursements. CASA deposits climbed more than 14% to Rs 5,121 crore and retail term deposits increased 12% to Rs 14,442 crore, while bulk term deposits fell 13.5% to Rs 4,307 crore. The CASA, retail term and deposits ratio stood at 82%, compared with 77.8% a year earlier and 82.8% in the previous quarter.

The stock has still lost about 2% in the past week and 10% over the past month, and is down more than 8% so far in 2026, leaving room for a sharper rerating if loan growth translates into stronger earnings. The next catalyst will be the full quarterly results, where investors will look for loan yield, deposit costs, net interest margin and asset-quality commentary.