Utkarsh Small Finance Bank Limited (UTKARSHBNK) AI Stock Analysis

• Market Cap: ₹29.45B
• Dividend Yield: 2.57%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: 2.35%
• EPS Growth: -261.81%
• Country: IN
• Employees: 16,081
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -2.69
• Shares Outstanding: 1,779,523,700
• 10 Day Avg. Volume: 665,369
• 30 Day Avg. Volume: 1,665,602
• 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
• EPS Forecast (FY): -463.87
• Revenue Forecast (FY): ₹1.87T

• Rating: 45 Neutral
• Price Target: ₹16.50 ▼(-1.43% Downside)

The overall stock score of 45 reflects significant financial challenges, including declining revenue and profitability, as well as liquidity concerns. Technical analysis indicates a bearish trend with weak momentum, and valuation metrics are concerning due to negative earnings. The dividend yield provides some support, but overall, the stock faces considerable risks.

Positive Factors

Financial Inclusion Focus

The bank's focus on financial inclusion positions it well to capture growth in underserved markets, driving long-term customer base expansion and revenue opportunities.

Product Diversification

A diverse product offering allows the bank to cater to various customer needs, enhancing cross-selling opportunities and reducing dependency on any single revenue stream.

Debt Management

Improved debt management reflects a stronger balance sheet, providing financial stability and flexibility for future growth initiatives.

Negative Factors

Revenue Decline

A sharp decline in revenue growth suggests operational challenges and competitive pressures, potentially impacting long-term profitability and market position.

Profitability Pressure

Deteriorating profit margins indicate increased costs or pricing pressures, which could hinder the bank's ability to generate sustainable profits over time.

Liquidity Concerns

Negative cash flows highlight liquidity issues, which may restrict the bank's ability to invest in growth opportunities or meet financial obligations without external funding.

Utkarsh Small Finance Bank Limited Business Overview & Revenue Model

Company Description

Utkarsh Small Finance Bank Limited provides banking and financial services in India. The company offers savings account, fixed, recurring, and tax saver fixed deposits; debit, credit, and other cards; home, LAP retail, personal, gold, and other loans; life and general insurance; investment products; and remittance, bill payment, locker facility, overdraft facility against fixed deposits, ATM and branch banking, and internet and mobile banking services for individual customers. It also provides current and institutional banking accounts; micro banking group, MSME, wholesale, micro banking business, commercial vehicle and construction equipment, and other loans; life and general insurance; various investment products; and remittance, bill payment, ATM, and internet and mobile banking services for business customers. The company was incorporated in 2016 and is based in Varanasi, India. Utkarsh Small Finance Bank Limited operates as a subsidiary of Utkarsh CoreInvest Limited.

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	35.79B	28.04B	20.34B	17.06B
Gross Profit	24.84B	26.22B	22.86B	18.28B	12.46B	9.64B
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: Neutral
• Last Price: 16.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 16.74 is below the 20-day moving average (MA) of 17.26, below the 50-day MA of 18.16, and below the 200-day MA of 19.58, indicating a bearish trend. The MACD of -0.61 indicates Positive momentum. The RSI at 44.68 is Neutral, neither overbought nor oversold. The STOCH value of 48.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	72 Outperform	₹12.41B	9.17	―	1.87%	13.76%	11.77%
ARMANFIN	68 Neutral	₹17.06B	274.81	―	―	-6.03%	-100.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UJJIVANSFB	60 Neutral	₹100.69B	24.13	―	2.68%	6.15%	-64.12%
EQUITASBNK	56 Neutral	₹74.80B	―	―	1.56%	10.02%	-120.18%
UTKARSHBNK	45 Neutral	₹29.45B	―	―	2.57%	2.35%	-261.81%

Utkarsh Small Finance Bank Limited Corporate Events

Utkarsh Small Finance Bank Completes Rights Issue to Boost Capital

Utkarsh Small Finance Bank Limited has successfully completed a Rights Issue, resulting in the allotment of 677,913,784 equity shares, which has increased the bank’s paid-up equity share capital. This strategic move, approved by the Capital Structuring and Fund Raise Committee, aims to strengthen the bank’s financial position and enhance its market presence, potentially benefiting shareholders and stakeholders by increasing the bank’s capital base.

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.