Utkarsh Small Finance Bank Q2 Disbursements Surge 55% YoY to Rs 3,525 crore

Utkarsh Small Finance Bank’s second‑quarter FY27 loan disbursements jumped 54.9% year‑on‑year to Rs 3,525 crore, propelled by robust growth in its non‑JLG portfolio. Total loan book rose 7.5% to Rs 20,063 crore during the same period. Deposits increased 6.6% to Rs 23,869 crore, reflecting stronger customer inflows. The bank also reported improvements in CASA balances and collection efficiency compared with the previous year, according to provisional business data. Growth was driven primarily by credit extended outside the Joint Liability Group (JLG) model, which helped lift overall disbursement figures. The rise in deposits suggests that borrowers are also placing more savings with the bank, supporting its liquidity position. Utkarsh’s performance adds to the broader trend of small finance banks expanding their loan books beyond traditional micro‑finance segments.

Context

Small finance banks in India focus on low‑income individuals and micro‑enterprises. Non‑JLG loans refer to credit given to borrowers not organized in joint‑liability groups, often offering higher yields for the bank.