Utkarsh Small Finance Bank has announced the approval of a proposal to sell non-performing assets (NPA) and written-off loans to an Asset Reconstruction Company (ARC). The decision was made during a meeting of the bank’s authorised Management Committee on 26 March 2026.
The bank has outlined the sale of two pools of unsecured stressed Microfinance Institution (MFI) loans. Pool 1 consists of a portfolio with an aggregate principal outstanding of approximately ₹1,016.24 crore as of 31 December 2025. The reserve price or binding offer for this pool is set at ₹133.10 crore. The term of sale for Pool 1 includes a combination of cash and security receipts.
Similarly, Pool 2 comprises a portfolio with an aggregate principal outstanding of approximately ₹474.75 crore. The reserve price or binding offer for this pool is ₹62.19 crore, with the sale terms also involving cash and security receipts.
The bank has also initiated the process of releasing a newspaper advertisement for an Expression of Interest (EOI) as per applicable requirements. Further details regarding the completion of the proposed deal will be communicated separately.
This disclosure is available on the bank’s official website, www.utkarsh.bank.in, for public access and records.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Yash Agarwal and reviewed by Aditya Bhagchandani before publication.