Analysts/Institutional Investor Meet/Con. Call Updates

August 07 , 202 6 BSE Limited National Stock Exchange of India Limited Scrip Code: 543942, 975790, 959644, Symbol: UTKARSHBNK 976203 Dear Sir/Madam, Sub: Transcript of earnings conference call with the investors and analysts held on August 03 , 202 6 - 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 August 03 , 202 6 We submit herewith the transcript of the Earnings / Conference call held on Monday, August 03, 202 6 at 0 4:00 p.m. (IST) in connection with the Una udited Financial Results for the quarter ended June 30 , 202 6. 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 Q1 FY27 Earnings Conference Call” August 03, 2026 MANAGEMENT: MR. GOVIND SINGH – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER – UTKARSH SMALL FINANCE BANK LIMITED MR. SARJUKUMAR PRAVIN SIMARIA – EXECUTIVE DIRECTOR – UTKARSH SMALL FINANCE BANK LIMITED MR. AMIT ACHARYA – CHIEF RISK OFFICER – UTKARSH SMALL FINANCE BANK LIMITED MR. VIRENDER SHARMA– HEAD – MICRO BANKING – UTKARSH SMALL FINANCE BANK LIMITED MR. SOURABH GHOSH – HEAD – CONSUMER BANKING – UTKARSH SMALL FINANCE BANK LIMITED MR. ABHAY KATARIA – HEAD ASSETS – UTKARSH SMALL FINANCE BANK LIMITED MODERATOR: MR. RENISH BHUVA – ICICI SECURITIES Page 1 of 16 Utkarsh Small Finance Bank Limited August 03, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Utkarsh SFB Limited Q1 FY27 Earnings Conference Call 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 at the end of today's presentation. Should you need assistance during the conference call, please signal an operator by pressing star than zero on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Renish Bhuva from ICICI Securities Limited. Thank you, and over to you, sir. Renish Bhuva: Yes. Thank you, Manoj. Hi, good evening, everyone, and welcome to Utkarsh Small Finance Bank Q1 FY27 Earnings Call. On behalf of ICICI Securities, I would like to thank Utkarsh SFB management team for giving us the opportunity to host this call. Today, we have with us management team of Utkarsh SFB represented by Mr. Govind Singh, Managing Director and CEO; Mr. Sarjukumar, Executive Director; Mr. Amit Acharya, Chief Risk Officer; Mr. Virender Sharma, Head of Micro Banking; Mr. Sourabh Ghosh, Head of Consumer Banking; and Mr. Abhay Kataria, Head of 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: Yes. Thank you, Renish. Thanks a lot. Good evening, everyone, and thank you for joining us for our quarter 1 FY27 earnings call. The first quarter of FY27 marks an important point in our journey. Over the last several quarters, our bank has navigated one of the most challenging operating environments faced by the microfinance industry in recent years. Throughout this period, our focus remained firmly on protecting franchise quality, preserving balance sheet strength, improving collections and ensuring that every strategic decision was aligned with the long-term interests of our customers, shareholders and other stakeholders. We are encouraged by the progress achieved across multiple dimensions of our business during the quarter. The actions undertaken over recent quarters are beginning to translate into measurable improvements in business momentum, asset quality indicators, portfolio composition, funding costs and operating performance. While profitability has not yet fully normalized, the significant reduction in losses and the strengthening of underlying business drivers reinforce our confidence that the bank is moving in the right direction. Over the last year, our objective has been clear: to build a stronger and more balanced institution by improving the quality of new businesses, strengthening risk management practices, diversifying revenue streams, expanding secured lending, enhancing collection infrastructure, deepening customer engagement and improving the granularity and quality of our liabilities franchise. These efforts are now providing the foundation for a more sustainable growth cycle. Page 2 of 16 Utkarsh Small Finance Bank Limited August 03, 2026 One of the most encouraging developments during the quarter has been the strengthening of businesses across both our JLG and non-JLG segments. Disbursement trends have improved significantly, reflecting both increased customer demand and our confidence in calibrated growth. During quarter 1 FY27, total disbursements grew by 49% year-on-year, supported by JLG disbursements, which grew by 5% year-on-year and non-JLG disbursements, which registered a robust growth of 93% year-on-year. Importantly, this growth has been built on strengthened underwriting frameworks and improved portfolio monitoring mechanisms. Our objective remains to grow assets of the right quality and risk profile rather than pursuing growth for its own sake. Consequently, equally encouraging are the trends visible in portfolio performance. The improvement in business momentum has been accompanied by continued strengthening in asset quality. During the quarter, X-bucket collection efficiency in the JLG segment remained strong at 99.7%, up from 98.6% in quarter 1 of FY26. SMA pools within the Micro Banking segment contracted to 1.2% from 1.3% in March '26 and 5.1% in June '25, reflecting strong field execution, enhanced collection processes. Alongside this, the total fresh NPA slippages (net of recoveries and upgradations) reduced materially to ~INR125 crores, compared with ~INR170 crores in the previous quarter and ~INR400 crores in the corresponding quarter of the previous year. As a result, the GNPA ratio as a percentage of gross loan portfolio stood at 5.9% as of June 2026, representing an improvement of ~550 basis points year-on-year and ~160 basis points quarter-on-quarter. These trends demonstrate that measures implemented over the recent quarters are producing tangible outcomes. As we assess the future shape of the bank, diversification continues to remain a central strategic priority. Over the years, we have consciously worked towards reducing concentration risks and building multiple growth avenues. Our JLG portfolio now represents 26% of the gross loan book (and 28%, including BC JLG exposure), compared to 88% in March 2020 (and 90% including BC JLG exposure). Simultaneously, secured lending has increased to 51% of the gross loan book from 45% a year ago. This structural transformation is changing the nature of our balance sheet, reducing margins volatility and supporting a more resilient risk profile. Within Micro Banking, the growth of our Micro Banking Business Loan product continues to validate our customer life cycle strategy. MBBL serves customers who have demonstrated repayment discipline and are ready to graduate beyond traditional group lending structures. Further, we have expanded the product to cater to new-to-bank customers as well. MBBL portfolio grew by 147% year-on-year and 11% sequentially during the quarter and now constitutes more than 30% of the Micro Banking portfolio. With penetration still below 20% of our customer base, there remains substantial room for further expansion. We believe this segment presents an attractive opportunity to deepen customer relationships while supporting business growth among our borrowers. Beyond Micro Banking, growth momentum across secured and diversified asset classes remained healthy. Our MSME por [Showing first 8,000 characters — download PDF for full document]