Shares of Utkarsh Small Finance Bank declined 5.75% to ₹20.65 in early trade on August 4 after the lender reported a sharp rise in gross non-performing assets (GNPA) in its Q4FY25 results. The stock opened lower and touched an intraday low of ₹20.60, dragging its market cap to ₹2,278 crore.
The bank’s GNPA ratio rose to 11.42% in Q4FY25 from 9.43% in Q3FY25 and 2.51% a year ago. Net NPAs also increased to 4.84% from 2.50% QoQ. Provisions and contingencies surged to ₹410 crore, up from ₹223 crore in the previous quarter.
For FY25, Utkarsh reported a muted 1% rise in pre-provision operating profit (PPoP) to ₹1,007 crore, but profit after tax fell sharply to ₹24 crore from ₹498 crore in FY24. The bank cited stress in its JLG (Joint Liability Group) loan portfolio due to guardrail norms as a key drag, though disbursement yields in secured products improved by 80–180 bps YoY.
On the positive side, deposits rose 23.4% YoY to ₹21,566 crore and the share of secured loans increased to 43%. The bank expanded its presence across 27 states and UTs, surpassing 1,000 branches.
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