Utkarsh Small Finance Bank Limited (UTKARSHBNK) AI Stock Analysis

• Market Cap: ₹36.43B
• Dividend Yield: 2.18%
• Average Volume (3M): 894.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 12.40%
• EPS Growth: -166.78%
• Country: IN
• Employees: 16,081
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -2.17
• Shares Outstanding: 1,779,523,700
• 10 Day Avg. Volume: 2,110,324
• 30 Day Avg. Volume: 894,137
• PEG Ratio: -1.10
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -0.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ₹22.00 ▲(23.25% Upside)

The overall stock score of 53 reflects significant financial challenges, with declining revenue and profitability, and liquidity concerns. Technical analysis shows bullish momentum, but overbought conditions could lead to a pullback. Valuation metrics are not favorable due to negative earnings, despite a moderate dividend yield.

Utkarsh Small Finance Bank Limited Business Overview & Revenue Model

Company Description

Utkarsh Small Finance Bank Limited (UTKARSHBNK) is a prominent player in the Indian banking sector, focusing on providing a wide range of financial services to underserved and unbanked populations. Established with the aim to enhance financial inclusion, the bank operates primarily in sectors including microfinance, retail banking, and small business loans. Its core products encompass savings accounts, fixed deposits, personal loans, and various credit facilities tailored to meet the needs of its diverse customer base, which includes individuals and small enterprises.

How the Company Makes Money

Utkarsh Small Finance Bank generates revenue primarily through the interest earned on loans provided to customers. The bank attracts deposits from individuals and businesses, which are then utilized to fund loans at a higher interest rate. This interest rate spread is a significant source of income. Additionally, the bank earns fees from various banking services, including account maintenance, transaction processing, and financial advisory services. It may also have partnerships with other financial institutions or fintech companies that enhance its product offerings and customer reach, contributing to its overall earnings. The bank’s focus on microfinance and small loans allows it to tap into a growing market segment, further supporting its revenue generation efforts.

Utkarsh Small Finance Bank Limited Financial Statement Overview

Summary

Utkarsh Small Finance Bank Limited faces a challenging financial environment with declining revenue and profitability, as evidenced by the income statement. While the balance sheet shows improved leverage, profitability metrics have weakened. The cash flow statement highlights liquidity concerns, with negative cash flows posing a risk to financial stability. Overall, the company needs to address revenue growth and cash flow management to improve its financial health.

Income Statement

The income statement shows a significant decline in revenue growth rate at -43.11% for the latest period, indicating a challenging environment. Margins have also deteriorated, with the net profit margin dropping to 1.44% from 21.77% the previous year. This suggests pressure on profitability, although the gross profit margin remains high at 100% due to the nature of the banking industry.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.79, which is an improvement from previous years. However, return on equity has decreased significantly to 0.80%, indicating reduced profitability on shareholders' equity. The equity ratio stands at 10.57%, suggesting a stable equity base relative to total assets.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating cash flow and free cash flow in the latest period. The free cash flow to net income ratio is positive at 1.05, but the overall cash flow position is concerning due to negative growth and coverage ratios, indicating potential liquidity issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	43.13B	43.65B	22.86B	28.04B	20.34B	9.64B
Gross Profit	24.84B	26.22B	22.86B	18.28B	12.46B	6.96B
EBITDA	-4.77B	1.04B	7.25B	5.94B	1.21B	1.81B
Net Income	-3.53B	237.00M	4.98B	4.05B	614.62M	1.12B
Balance Sheet
Total Assets	0.00	281.27B	239.03B	191.17B	150.64B	121.38B
Cash, Cash Equivalents and Short-Term Investments	0.00	34.37B	30.27B	25.16B	18.72B	11.70B
Total Debt	0.00	23.55B	61.96B	61.03B	54.33B	48.40B
Total Liabilities	-29.75B	251.53B	209.29B	171.17B	134.91B	107.70B
Stockholders Equity	29.75B	29.75B	29.73B	20.00B	15.72B	13.68B
Cash Flow
Free Cash Flow	0.00	-33.76B	10.41B	14.97B	11.82B	-1.63B
Operating Cash Flow	0.00	-32.18B	11.11B	15.73B	13.29B	-834.63M
Investing Cash Flow	0.00	-7.77B	-6.20B	-6.93B	-7.39B	-5.32B
Financing Cash Flow	0.00	44.04B	39.02B	34.01B	26.78B	1.72B

Utkarsh Small Finance Bank Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UTKARSHBNK, the sentiment is Positive. The current price of 17.85 is below the 20-day moving average (MA) of 19.03, below the 50-day MA of 18.53, and below the 200-day MA of 20.36, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 57.18 is Neutral, neither overbought nor oversold. The STOCH value of 56.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:UTKARSHBNK.

Utkarsh Small Finance Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAPITALSFB	―	₹12.84B	9.58	―	1.81%	14.99%	19.59%
ARMANFIN	―	₹17.55B	282.70	―	―	0.02%	-96.51%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UJJIVANSFB	―	₹99.26B	22.63	―	2.80%	6.15%	-64.12%
UTKARSHBNK	―	₹36.43B	―	―	2.18%	12.40%	-166.78%
EQUITASBNK	―	₹68.54B	―	―	1.66%	13.47%	-115.98%

Utkarsh Small Finance Bank Limited Corporate Events

Utkarsh Small Finance Bank Announces ₹949 Crore Rights Issue

Utkarsh Small Finance Bank Limited has announced a Rights Issue to raise up to ₹949.08 crore by offering fully paid-up equity shares to existing shareholders. The Rights Issue is set at a price of ₹14 per share, with a ratio of 8 shares for every 13 held, and aims to strengthen the bank’s capital base. The bank has received necessary approvals from the NSE and BSE for listing the new shares, and the issue is scheduled to open on October 24, 2025, and close on November 3, 2025. This move is expected to enhance the bank’s financial stability and support its growth initiatives, potentially impacting its market position positively.

Utkarsh Small Finance Bank Reports Strategic Shift in Loan and Deposit Portfolios

Utkarsh Small Finance Bank Limited reported a decrease in its gross loan portfolio by 2.3% year-over-year and 3.0% quarter-over-quarter as of September 30, 2025. While the JLG loan portfolio saw a significant decline, the non-JLG loan portfolio grew by 30.3% year-over-year. Total deposits increased by 10% year-over-year, with a notable rise in CASA and retail term deposits, enhancing the bank’s liquidity position, evidenced by a liquidity coverage ratio of 219%. These changes reflect a strategic shift towards strengthening retail banking and improving deposit ratios.

Utkarsh Small Finance Bank Announces Rights Issue to Boost Capital

Utkarsh Small Finance Bank Limited has announced a proposed rights issue of equity shares to raise funds. The bank has filed the necessary applications with stock exchanges for comments and in-principle listing approval. This move is part of the bank’s strategy to enhance its capital base and comply with regulatory requirements, potentially impacting its market positioning and shareholder value.

Utkarsh Small Finance Bank Announces Management Change and Quarterly Results

Utkarsh Small Finance Bank Limited announced a change in its management with the appointment of Dr. Sourabh Ghosh as the Head of Consumer Banking, effective August 2, 2025. The bank also reported its unaudited financial results for the quarter ending June 30, 2025, which were reviewed by statutory auditors, indicating a focus on transparency and regulatory compliance.

Utkarsh Small Finance Bank Shifts Focus to Secured Lending Amid Q1 Losses

Utkarsh Small Finance Bank Limited reported its financial results for the quarter ended June 30, 2025, highlighting a strategic shift towards secured lending amid challenging conditions. The bank’s gross loan portfolio grew by 2.3% year-over-year, while deposits increased by 18.3%, driven by a 33.7% rise in retail term deposits. Despite a net loss of ₹239 crore, the bank focused on de-risking its portfolio, with secured loans now comprising 45% of the total, up from 35% the previous year. The bank’s efforts to optimize yields in secured products and a cautious approach to unsecured micro-banking are aimed at improving long-term asset quality, although they have impacted short-term interest income. The bank is also working towards enhancing margins and scalability as new branches mature.

Utkarsh Small Finance Bank Releases Q1 2025 Financial Results

Utkarsh Small Finance Bank Limited has released an investor presentation detailing its unaudited financial results for the quarter ending June 30, 2025. This announcement, made in compliance with SEBI Listing Regulations, provides stakeholders with insights into the bank’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

Utkarsh Bank Reports Q1 2025 Results and New Appointment

Utkarsh Small Finance Bank Limited announced the approval of its unaudited financial results for the quarter ended June 30, 2025, by its Board of Directors. Additionally, Dr. Sourabh Ghosh has been appointed as the Head of Consumer Banking, enhancing the bank’s senior management team. These developments are expected to impact the bank’s operational efficiency and market positioning positively.