The numbers are back. On Tuesday, Utkarsh Small Finance Bank filed its Q2 FY27 business update, showing total disbursements of ₹3,525 crore for the quarter ended September 30, 2026. That’s a 54.9% spike from the ₹2,275 crore recorded in the same period last year. Sequentially, the figure is up 4.6% from ₹3,370 crore in Q1 FY27.
The real story is in the mix. Non-joint liability group (non-JLG) disbursements exploded 94.2% year-on-year to ₹2,602 crore. Meanwhile, JLG disbursements slipped 1.3% to ₹923 crore. This shift is visible in the loan book, where the non-JLG portfolio climbed 35.1% YoY to ₹14,917 crore. The JLG book, however, is shrinking, down 32.4% YoY to ₹5,146 crore. The JLG-to-non-JLG portfolio mix now stands at 26:74, a sharp move from 41:59 a year ago.
Funding costs remain sticky but manageable. Total deposits rose 6.6% YoY to ₹23,869 crore. CASA deposits grew 14.3% to ₹5,121 crore, pushing the CASA ratio to 21.5% from 20% a year ago. Retail term deposits added ₹14,442 crore, up 11.8% YoY. Bulk term deposits fell 13.5% to ₹4,307 crore, suggesting the bank is actively pruning higher-cost wholesale funding.
Asset quality is holding firm. X-bucket collection efficiency hit 99.53%, slightly down from 99.63% in Q1 but well above the 98.62% seen a year ago. Special mention accounts (SMA) touched 1.48%, up from 1.20% in Q1 but a massive improvement from 4.87% in Q2 FY26. The liquidity coverage ratio stands at a healthy 176%. Utkarsh shares ended the session at ₹13.54 on the BSE, gaining 2.03% as traders digested the mix shift.
These figures are provisional and await Joint Statutory Auditors’ review and Board approval. The market is watching how the bank balances the JLG exit against the scaling of its non-JLG book. With the portfolio now leaning heavily on secured, non-JLG assets (secured-to-unsecured mix at 52:48), the risk profile looks tighter. The next data point to watch is the Q3 FY27 update, where deposit growth and CASA penetration will be key.