Utkarsh SFB's stock crashes 60% from 52-week high
Utkarsh Small Finance Bank's stock slid almost 8% on Monday after its latest quarterly results disappointed investors.
Shares are now at ₹20.15—well below the IPO price of ₹25, and a massive 60% lower than its 52-week high.
The main reasons? Rising bad loans and a sharp dip in profits.
Loans and profit
The bank's bad loans (Gross NPA) shot up to 11.4% from just 2.8% a year ago, and Net NPA also climbed to 5%.
Instead of a profit, the bank posted a loss of ₹239 crore this quarter—last year, it was sitting on a ₹137 crore profit.
Provisions more than doubled to ₹410 crore as the bank tried to cover potential losses, while loan growth slowed down as focus shifted to recovering dues rather than giving out new loans.
All these factors have weighed heavily on the share price.