Bank stock jumps 4% after board to consider approval of amalgamation with Utkarsh CoreInvest

Synopsis: Utkarsh Small Finance Bank will hold an unsecured creditors’ meeting on 28 March 2026 to consider merging Utkarsh CoreInvest with the bank, aiming to simplify the structure and improve operational efficiency.

This Small-cap Bank Stock, engaged in providing banking services like savings accounts, loans, deposits, and digital banking to underserved rural and semi-urban customers across India, jumped 4.06 percent after the board considered approval for the amalgamation of Utkarsh CoreInvest Limited

With a market capitalization of Rs. 2,653.27 crores, the share of Utkarsh Small Finance Bank Limited has reached an intraday high of Rs. 15.88 per equity share, rising nearly 4.06 percent from its previous day’s close price of Rs. 15.26. Since then, the stock has retreated and is currently trading at Rs. 14.91 per equity share. 

Reason Behind the Surge

Utkarsh Small Finance Bank Limited is planning a meeting of its unsecured creditors on 28 March 2026 through video conferencing to consider the proposed amalgamation of Utkarsh CoreInvest Limited with the bank. The meeting has been arranged as per the order of the National Company Law Tribunal (NCLT). 

Creditors will be able to vote electronically between 25 March and 27 March 2026, and also during the meeting. The purpose of the merger is to simplify the group structure and improve business efficiency. If approved, all assets and liabilities of Utkarsh CoreInvest Limited will be transferred to Utkarsh Small Finance Bank Limited.

Business Highlights

Utkarsh Small Finance Bank Limited has a strong business presence across 27 states and union territories with about 1,105 banking outlets. The bank is supported by a wide network of 372 ATMs and 783 micro ATMs, helping customers access banking services easily. 

Utkarsh Small Finance Bank Limited has around 18,827 employees working across the country. The bank manages a gross loan portfolio of about Rs. 18,306 crore and deposits of around Rs. 21,087 crore, showing steady growth. These business highlights reflect the bank’s strong network, growing customer base, and expanding financial services across India.

Utkarsh Small Finance Bank Limited is a leading small finance bank focused on serving underserved rural and semi-urban customers across India. It offers simple banking services like savings accounts, fixed deposits, micro loans, housing loans, MSME loans, and personal loans, mainly through a joint liability group model. The bank provides easy digital options such as mobile banking, internet banking, and ATMs for quick transactions. 

Recent Quarter Results

Coming into financial highlights, Utkarsh Small Finance Bank Limited’s Net Interest Income has decreased from Rs. 480.12 crore in Q3 FY25 to Rs. 348.35 crore in Q3 FY26, which is a drop of 27.45 percent. The net loss of the company has increased from Rs. 168 crore in Q3 FY25 to Rs. 375 crore in Q3 FY26.

Utkarsh Small Finance Bank Limited’s Net Interest Income has grown at a CAGR of 24 percent over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 7.17 percent and 0.79 percent, respectively. Utkarsh Small Finance Bank Limited has an earnings per share (EPS) of Rs. -5.39, and its debt-to-equity ratio is 9.98x.

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