Utkarsh Small Finance Bank Limited (UTKARSHBNK) AI Stock Analysis

• Market Cap: ₹24.20B
• Dividend Yield: 2.82%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 2.35%
• EPS Growth: -261.81%
• Country: IN
• Employees: 16,081
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): -3.20
• 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: ₹26.00
• Price Target Upside: 81.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹13.50 ▼(-5.66% 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

Improved Leverage

Lower leverage (debt-to-equity 0.79) provides greater balance-sheet flexibility for a small finance bank. It reduces refinancing and solvency risk, supports continued lending to micro and SME customers, and gives management room to rebuild margins and capital over the coming quarters.

Stable Equity Base

An equity ratio of 10.57% signals a meaningful regulatory capital buffer for a regional small finance bank. That cushion helps absorb loan losses without immediate capital raises, enabling sustainable lending and compliance with regulatory capital norms over the medium term.

Distribution Partnerships

Partnerships with fintechs and microfinance firms diversify origination channels and lower acquisition costs. Durable channel diversification increases access to underbanked segments, supports scalable loan growth, and stabilizes customer sourcing beyond branch footprints.

Negative Factors

Sharp Revenue Decline

A 43% decline in revenue growth materially erodes core interest and fee income. Such a sharp contraction weakens earnings power, constrains the bank's ability to absorb credit costs or fund investments, and risks prolonged top-line pressure absent structural remediation.

Margin Compression

Net margin collapsing to 1.44% from 21.77% indicates severe profitability deterioration, likely driven by rising credit costs or yield pressure. Sustained margin compression undermines ROE and retained earnings, limiting capital formation and constraining growth initiatives.

Negative Operating Cash Flow

Negative operating and free cash flows signal the bank is consuming liquidity internally, increasing reliance on external funding. Persistent cash-flow deficits harm funding stability, raise funding costs, and limit the bank's capacity to expand lending or provision for asset quality stress.

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 and advances provided to its customers. The bank lends money to individuals and small enterprises, charging interest rates that contribute significantly to its income. Additionally, UTKARSHBNK earns revenue from fees and commissions associated with its financial products and services, such as account maintenance fees, transaction fees, and charges for other banking services. The bank also benefits from income generated through its investment portfolio, which includes government securities and other financial instruments. Strategic partnerships with fintech companies and microfinance institutions enhance its reach and customer base, further contributing to its revenue streams.

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: Negative
• Last Price: 14.31
• 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 Negative. The current price of 14.31 is above the 20-day moving average (MA) of 14.29, below the 50-day MA of 14.97, and below the 200-day MA of 18.15, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 24.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹11.67B	8.59	―	1.97%	13.76%	11.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ARMANFIN	60 Neutral	₹16.97B	-1,538.01	―	―	-6.03%	-100.77%
UJJIVANSFB	60 Neutral	₹126.67B	25.60	―	2.82%	6.15%	-64.12%
SURYODAY	57 Neutral	₹14.73B	21.51	―	―	―	―
EQUITASBNK	56 Neutral	₹79.88B	-118.24	―	1.63%	10.02%	-120.18%
UTKARSHBNK	45 Neutral	₹24.20B	-2.34	―	2.82%	2.35%	-261.81%

Utkarsh Small Finance Bank Limited Corporate Events

Utkarsh Small Finance Bank Files NCLT Application for Amalgamation with Utkarsh CoreInvest

Utkarsh Small Finance Bank Limited has announced that a joint application for the proposed amalgamation of its promoter entity, Utkarsh CoreInvest Limited, with the bank has been filed with the National Company Law Tribunal (NCLT), Allahabad Bench, under the relevant provisions of the Companies Act, 2013. The filing seeks NCLT directions for convening meetings of equity shareholders and other stakeholders, marking a key regulatory step in the amalgamation process that, once approved, is expected to simplify the group structure and potentially enhance governance and operational alignment between the bank and its parent entity.

Utkarsh Small Finance Bank Announces Key Leadership Appointments

Utkarsh Small Finance Bank Limited announced key decisions from its board meeting on December 13, 2025, including the appointment of Ms. Suchita Chatterjee as the permanent Head of Internal Audit and the re-appointment of Mr. Ajay Kumar Kapur as an Independent Director for a second term. These appointments are expected to strengthen the bank’s governance and audit functions, potentially enhancing its operational efficiency and stakeholder confidence.

Utkarsh Small Finance Bank Announces Key Board Appointments

Utkarsh Small Finance Bank Limited announced changes in its board of directors, with the appointment of Ms. Suchita Chatterjee as the permanent Head of Internal Audit and the re-appointment of Mr. Ajay Kumar Kapur as an Independent Director for a second term. These changes are expected to strengthen the bank’s governance and audit processes, potentially enhancing its operational efficiency and stakeholder confidence.

Utkarsh Small Finance Bank Announces Key Management Appointments

Utkarsh Small Finance Bank Limited announced changes in its management structure following a board meeting. Ms. Suchita Chatterjee has been appointed as the permanent Head of Internal Audit, transitioning from her interim role, and Mr. Ajay Kumar Kapur has been re-appointed as an Independent Director for a second term, pending shareholder approval. These changes are expected to strengthen the bank’s governance and operational oversight.

Utkarsh Small Finance Bank to Engage with Investors at Kotak Midcap Conference 2025

Utkarsh Small Finance Bank Limited has announced a scheduled meeting with investors and analysts on November 21, 2025, at the Kotak Midcap Conference 2025 in Mumbai. This meeting, which will be conducted in person, aims to discuss publicly available information and will not involve any unpublished price-sensitive information, reflecting the bank’s commitment to transparency and regulatory compliance.

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.