Utkarsh Small Finance Bank has successfully completed the transfer of its portfolio of unsecured stressed microfinance institution (MFI) loans, amounting to ₹195.29 crore, to asset reconstruction companies (ARCs). The transaction was concluded using the Swiss Challenge Method.
The bank’s portfolio was divided into two pools for the transfer. Pool 1, comprising 2,92,030 accounts with an aggregate principal outstanding of ₹1,016.24 crore as of 31 December 2025, was transferred to Asset Reconstruction Company India Limited (ARCIL) for a consideration of ₹133.10 crore. Pool 2, consisting of 1,36,832 accounts with a principal outstanding of ₹474.75 crore, was transferred to Shriram Asset Reconstruction Private Limited (SARC) for ₹62.19 crore.
This strategic move is part of the bank’s ongoing efforts to manage its non-performing assets (NPAs) and written-off accounts effectively. By transferring these stressed assets to ARCs, Utkarsh Small Finance Bank aims to improve its balance sheet and focus on core banking operations.
The details of this transaction are available on the bank’s official website, www.utkarsh.bank.in.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Business Desk and reviewed by Markets Desk before publication.