Small Finance Bank
Utkarsh SFB sells Rs 1,491 cr of bad loans to ARCs at huge haircut
Utkarsh Small Finance Bank realises just Rs 195 crore from the sale, which is 13% of outstanding loan pool sold; ARCIL is biggest buyer.
Utkarsh Small Finance Bank realises just Rs 195 crore from the sale, which is 13% of outstanding loan pool sold; ARCIL is biggest buyer.
Utkarsh Small Finance Bank has sold bad loans of Rs 1,491 crore to two asset reconstruction companies (ARCs).
The small finance bank (SFB) took a massive haircut, realising just Rs 195 crore from the sale, which is merely 13% of the outstanding loan pool sold.
Utkarsh put two separate pools of stressed microfinance loans on the block.
Asset Reconstruction Company India Ltd (ARCIL) paid Rs 133 crore to acquire the first pool of 2.92 lakh accounts amounting Rs 1,016 crore.
Shriram Asset Reconstruction paid Rs 62 crore to buy the second pool of 1.37 lakh accounts with loan outstanding Rs 475 crore.
Utkarsh’s gross non-performing assets ratio stood at 11% at the end of December 2025, which was the worst in the banking industry.
For the fiscal third-quarter ended December 2025, the bank had suffered a net loss of Rs 375 crore. Operational loss was at Rs 44 crore compared to a profit of Rs 185 crore in the year-ago period.
