Utkarsh SFB Transfers Stressed Loans Worth ₹726.82 Cr to ARCs

Utkarsh Small Finance Bank Ltd has completed the transfer of its stressed portfolio, comprising unsecured MFI loans and secured commercial vehicle & construction equipment loans, to Asset Reconstruction Companies (ARCs). The total aggregate principal outstanding of these stressed assets as of March 31, 2026, was ₹726.82 Crore. The transaction was conducted via the Swiss Challenge Method. The consideration received for the transfer amounts to ₹149.55 Crore. This move aims to clean up the bank's balance sheet and improve its asset quality.