Utkarsh Small Finance Bank reported a sharp loss for the September quarter, hurt by weaker income, elevated provisions and rising stress in parts of its loan book, even as the lender signalled a strategic shift toward secured lending.

The bank posted a net loss of ₹348 crore for the quarter ended Sept 30, compared with a profit of ₹51 crore a year earlier.

Net interest income fell 37.2% to ₹350.5 crore, down from ₹558 crore last year, as the bank tightened underwriting norms and moderated disbursements in its unsecured micro-banking portfolio.

Asset quality weakened, with gross NPA rising to 12.42% from 11.42% in the previous quarter, while net NPA remained flat at 5%. The lender said it continued to strengthen collections, including expanding its recovery workforce and splitting large

See Full Page