Utkarsh Small Finance Bank has announced a rights issue to raise approximately ₹950 crore, following approval from the bank’s Board of Directors on October 8, 2025. The record date to determine shareholders eligible for the rights entitlement has been fixed as October 14, 2025.
Rights Issue Details
- Issue Size: Up to 67,79,13,784 fully paid-up equity shares
- Face Value: ₹10 per share
- Issue Price: ₹14 per share (including ₹4 premium)
- Total Amount: Not exceeding ₹950 crore
- Payment: Full issue price payable at the time of application
Shareholder Entitlement: Eligible shareholders will receive 8 Rights Equity Shares for every 13 fully paid-up Equity Shares held as of the record date.
Key Dates
| Event | Date |
| Last Date to Buy Shares (to be eligible) | 13 Oct 2025 |
| Record Date | 14 Oct 2025 |
| Issue Opens (Bid/Offer Period Begins) | 24 Oct 2025 |
| Last Date for Renunciation of Rights Entitlements | 28 Oct 2025 |
| Issue Closes (Bid/Offer Ends) | 3 Nov 2025 |
The rights issue provides existing shareholders an opportunity to increase their stake at a preferential price. Shareholders are advised to check eligibility and participate within the timeline.
Q1FY26 Performance and Strategic Focus
Speaking on the first-quarter results, Govind Singh, MD & CEO of Utkarsh Small Finance Bank, said:
“During Q1FY26, the Bank continued its strategic pivot towards secured lending, amid a challenging operating environment. Our non-JLG loan portfolio sustained strong momentum, growing 39% YoY. Consequently, the share of secured loans in the overall book rose to 45% as of June 30, 2025, up from 35% a year ago, highlighting focused portfolio de-risking and improved asset quality.”
He added that yield optimisation efforts in secured products, including housing and MSME loans, drove disbursement yields higher by 40–150 bps compared to Q1FY25, contributing to healthy business growth.
Summary
Utkarsh Small Finance Bank is set to raise ₹950 crore through a rights issue, giving shareholders an opportunity to strengthen their stake. The bank continues to focus on secured lending and yield optimisation, reflecting a strategic approach to portfolio de-risking and sustainable growth.
Disclaimer:
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