Utkarsh Small Finance Bank Share Price Slips Below IPO Level After Sharp Quarterly Setback

Market Performance

Shares of Utkarsh Small Finance Bank plunged nearly 7.9% on Monday, August 4, closing at ₹20.15, a significant drop that places the stock below its IPO price of ₹25.

• The stock is now down over 60% from its 52-week high of ₹51.36
• It has lost 41% in calendar year 2025 alone

This steep decline follows the release of the bank's quarterly financial results after market hours on Friday.

Main News

The lender reported a net loss of ₹239 crore in the latest quarter, a stark reversal from the net profit of ₹137 crore during the same period last year.

Additionally, the bank has seen a noticeable decline in asset quality:

• Gross NPA rose sharply to 11.4%, from 9.4% in March 2025
• Net NPA also increased to 5%, up from 4.8% in March 2025
• On a year-on-year basis, Gross NPA surged from 2.8% and Net NPA from 0.3%

Provisions for bad loans also saw a substantial jump:

• Provisions stood at ₹410 crore, up from ₹223 crore in the previous quarter

The bank attributed this performance to its strategic decision to reduce disbursements and prioritize collections, resulting in a shrinking loan book.

Company Financials

Revenue

While exact revenue numbers weren't disclosed in the available data, the bank’s loan activity and interest income may have been impacted due to slower disbursements.

Gross Loan Portfolio

• The Gross Loan Portfolio rose by 2.3% YoY to ₹19,224 crore
• Share of secured loans increased to 45%, compared to 35% last year

Provisions

• ₹410 crore this quarter
• Up from ₹223 crore in the March quarter

Net Profits

• Reported net loss of ₹239 crore
• Versus net profit of ₹137 crore in the same quarter last year

Company Details

Utkarsh Small Finance Bank, which made its market debut in August 2023, has seen a rollercoaster journey. After peaking at ₹51.36, the bank’s share price has now declined over 60% from those levels.

Despite efforts to strengthen the quality of its loan book by increasing secured lending, rising NPAs and shrinking disbursements have weighed heavily on performance.

Summary of the Article

The Utkarsh Small Finance Bank share price took a sharp hit on Monday following weak quarterly earnings. With mounting provisions, deteriorating asset quality, and a shift in business strategy, the stock now trades below its IPO price. The bank reported a net loss, and investors are reacting strongly to the increased stress in its balance sheet.