Transcript of Earnings Call held on November 04, 2026

November 11, 2026 BSE Limited National Stock Exchange of India Limited Scrip Code: 543942, 975790, 959644, Symbol: UTKARSHBNK 976203, 978213 Dear Sir/Madam, Sub: Transcript of earnings conference call with the investors and analysts held on November 04, 2026 - Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") Ref: Earnings conference call with Investors and Analysts on November 04, 2026 We submit herewith the transcript of the Earnings / Conference call held on Wednesday, November 04, 2026 at 06:15 p.m. (IST) in connection with the Unaudited Financial Results for the quarter and half year ended September 30, 2026. This disclosure is also available on the Bank’s website i.e. www.utkarsh.bank.in. This is for your information and records. Yours faithfully, For Utkarsh Small Finance Bank Limited Muthiah Ganapathy Company Secretary & Compliance Officer Encl.: As above “Utkarsh Small Finance Bank Limited Q2 and H1 FY27 Earnings Conference Call” November 04, 2026 MANAGEMENT: MR. GOVIND SINGH – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER MR. SARJUKUMAR PRAVIN SIMARIA – EXECUTIVE DIRECTOR MR. AMIT ACHARYA – CHIEF RISK OFFICER MR. MANMOHAN SHETTY – CHIEF FINANCIAL OFFICER MR. VIRENDER SHARMA – HEAD - MICRO BANKING MR. SOURABH GHOSH – HEAD - CONSUMER BANKING MR. ABHAY KATARIA – HEAD - ASSETS MODERATOR: MR. RENISH BHUVA – ICICI SECURITIES Page 1 of 18 Utkarsh Small Finance Bank Limited November 04, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY27 Earnings Conference Call of Utkarsh SFB hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I would now hand the conference over to Mr. Renish from ICICI Securities. Thank you, and over to you, sir. Renish Bhuva: Yes. Thank you, Muskan. Thank you. Good evening, everyone, and welcome to Utkarsh Small Finance Bank Q2 FY27 Earnings Call. On behalf of ICICI Securities, I would like to thank Utkarsh SFB for giving us the opportunity to host this call. Today, we have with us the entire top management team of Utkarsh SFB represented by Mr. Govind Singh, Managing Director and CEO; Mr. Sarjukumar Simaria, Executive Director; Mr. Amit Acharya, Chief Risk Officer; Mr. Manmohan Shetty, Chief Financial Officer; Mr. Virender Sharma, Head Micro Banking; Mr. Sourabh Ghosh, Head Consumer Banking; and Mr. Abhay Kataria, Head Assets. I will now hand over the call to Govind ji for his opening remarks, and then we'll open the floor for Q&A. Over to you, sir. Govind Singh: Thank you very much, Renish. Thanks a lot, as always. Good evening, everyone, and thank you for joining us for our quarter 2 FY27 earnings call. Let me begin by reflecting on the evolving operating environment for Utkarsh Small Finance Bank. Our business momentum is recovering. Fresh stress formation has reduced substantially. Collection efficiency remains strong. Credit costs have moderated and funding costs are declining and the contribution of diversified businesses is increasing. At the same time, our operating profitability is improving every succeeding quarter. These are important developments because they demonstrate that the improvement is not dependent on any single factor but is being supported by multiple levers moving in the right direction. Albeit our growth has been a little slow but steady, and the same is ready to pick pace now. Our pre-provisioning operating profit increased to INR85 crores in quarter 2 FY27 compared with an operating loss of INR3 crores in quarter 2 FY26, registering a sequential improvement of 34% over quarter 1 FY27. For H1 FY27, PPoP stood at INR149 crores. Alongside this, credit costs have reduced sharply to 2.8% in H1 FY27 from 9.1% in H1 FY26. Consequently, the Bank's net loss declined by close to 80% Y-o-Y to INR70 crores in quarter 2 FY27 and INR104 crores for H1 FY27. While the reported loss in quarter 2 was higher than quarter 1, the previous quarter benefited from certain one-off items like CGMFU provision reversal and ARC transaction. Adjusting for these non-recurring items, the underlying net loss in quarter 2 was significantly lower sequentially. The combination of improving operating earnings and a Page 2 of 18 Utkarsh Small Finance Bank Limited November 04, 2026 substantial moderation in credit costs is strengthening the underlying earnings profile of the bank. The improvement in portfolio performance further reinforced this trend. Collection efficiency in the X bucket of JLG segment remained strong at 99.6% during the quarter compared with 98.6% in quarter 2 of FY26. The SMA pool within micro banking has contracted to 1.7% from 4.9% in September 2025. Fresh NPA slippages (net of recoveries and upgradations) declined to ~INR175 crores in quarter 2 FY27 against INR415 crores in corresponding quarter last year. For H1 FY27, this stood at INR300 crores compared with ~INR810 crores in H1 FY26. Consequently, GNPA as a percentage of gross loan portfolio improved to 5.9% as on September 2026, reflecting an improvement of almost 630 basis points year-on-year. These developments indicate that strengthened collection infrastructure, enhanced monitoring and more disciplined credit practices are translating into lower incremental stress and better portfolio performance. Another important positive is the recovery in business activity. Total disbursements during H1 FY27 grew by 52% year-on-year, with JLG disbursements increasing by 2% and non-JLG disbursements registering growth of 94%. This supported gross loan portfolio growth of 7.5% year-on-year and 2.3% sequentially. The improvement reflects a gradual restoration of our business momentum while maintaining a calibrated approach towards customer selection and underwriting. Our focus remains on growing the portfolio through quality incremental lending rather than pursuing volumes at expense of risk-adjusted returns. On the liability side, the bank has made meaningful progress in strengthening its deposit franchise. Total deposits grew by 7% year-on-year, supported by 14% growth in CASA deposits and 12% growth in retail term deposits. The CASA plus retail term deposit ratio improved to 82% from 78% a year ago, while the CASA ratio reached 21.4% as on September 2026. This improvement in funding composition is already reflecting in our cost of funds, which declined by ~50 basis points year-on-year to 7.4% in H1 FY27. With the benefits of deposit repricing and the improving liability mix expected to flow through progressively, we see further support to funding costs and margin stability. Taken together, improving business momentum, lower credit costs and declining funding costs are providing a stronger foundation for sustained earnings improvement. Let me now touch upon the structural changes underway in our business model. Portfolio diversification continues to be one of our most important strategic priorities. The JLG portfolio, which constituted 88% of the gross loan portfolio in March 2020 (and 90% including BC JLG exposure), has now reduced to 24% (and 26% including BC JLG exposure). In contrast, secured lending has increased to 52% of the gross loan portfolio from 47% a year ago. This transformation is reducing dependence on traditional group lending and creating a more balanced portfolio with multiple growth and earning drivers. Within micro banking, our micro banking business loan product continues to gain traction. The product enables us to graduate customers with demonstrated repayment discipline into individual lending relationships. Further, we have expanded the product to cater to new-to-ba [Showing first 8,000 characters — download PDF for full document]