Utkarsh Small Finance Bank (USFB) has reported robust Q1 FY27 operational metrics, highlighted by a massive surge in disbursements, a strategic shift in its loan mix, and significant improvements in asset quality. Key Highlights: Disbursements: Total disbursements jumped 48.5% YoY to ₹3,370 crore, driven by a massive 92.9% surge in Non-JLG (individual) loans to ₹2,180 crore. Loan Book: Gross AUM grew 2% YoY to ₹19,612 crore. The portfolio mix shifted favorably towards Non-JLG loans (72%, up from 55%) and secured loans (51%, up from 45%). Deposits: Total deposits rose 2.6% YoY to ₹22,053 crore. The bank successfully grew Retail Term Deposits by 14.7% while actively reducing reliance on Bulk Term Deposits by 32.1%. The CASA ratio improved to 22.1%. Asset Quality & Liquidity: The micro-banking SMA pool contracted sharply to 1.20% (down from 5.10% YoY), indicating a much cleaner loan book. X Bucket Collection Efficiency remained robust at 99.63%, supported by a strong Liquidity Coverage Ratio (LCR) of 223%. Strategic Outlook: USFB is successfully executing a strategic pivot away from traditional micro-finance (JLG) towards larger, secured, non-JLG retail loans. Concurrently, the bank is de-risking its liability franchise by replacing volatile bulk deposits with stable retail and CASA deposits, while significantly improving overall asset quality.

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