Utkarsh Small Finance Bank shares rally 7% after Q2 disbursements jump 55% YoY, deposits rise 7%
Utkarsh Small Finance Bank reported a 55% year-on-year rise in Q2 FY27 disbursements to Rs 3,525 crore, driven by strong non-JLG loan growth. Deposits increased 7%, while CASA deposits rose 14%. The bank’s CASA ratio improved to 21.5%, indicating stronger low-cost deposit mobilisation despite overall funding growth remaining moderate.
Utkarsh Small Finance Bank's shares surged by 7% to Rs 14.47 on the BSE following the release of its provisional business update for Q2 FY2027. The company reported a remarkable 55% increase in total disbursements compared to the same period last year, reaching Rs 3,525 crore. This significant growth was primarily fueled by a 94% surge in non-Joint Liability Group (JLG) loans, which amounted to Rs 2,602 crore.
However, JLG loans witnessed a slight decline of over 1% YoY at Rs 923 crore. Utkarsh Small Finance Bank's deposits grew at a more modest pace, rising by nearly 7% YoY to Rs 23,869 crore. The CASA deposits expanded by over 14% YoY to Rs 5,121 crore, while retail term deposits increased by around 12% YoY to Rs 14,442 crore. Conversely, bulk term deposits fell by 13.5% YoY to Rs 4,307 crore.
The bank's current account saving account (CASA) ratio was 21.5% in Q2 FY27, up from 20% in the same period of the previous year and 21.1% in Q1 FY27. The combined CASA, retail term, and deposits ratio stood at 82% in Q2 FY27, compared to 77.8% in Q2 FY26 and 82.8% in Q1 FY27.
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