Utkarsh deposit funding rises to 93% by September 2026

Utkarsh funded 93% of its funding mix through deposits in September 2026, compared with 66% in March 2020, while refinance declined to 4% from 29%. The change accompanied total deposits of Rs 23,869 crore, up 7% year on year, although the credit-to-deposit ratio rose to 81%.

How has Utkarsh's funding mix changed?

Utkarsh increased deposits' share of funding by 27 percentage points, to 93% in September 2026 from 66% in March 2020. Refinance declined by 25 percentage points to 4% from 29%, while other borrowings fell to 3% from 5%. Management described the shift as increasing reliance on deposits.

The September 2026 balance sheet reported deposits of Rs 23,869 crore and borrowings of Rs 1,939 crore, within total capital and liabilities of Rs 29,090 crore. The presentation reports funding-mix shares separately from balance-sheet liabilities and does not provide a reconciliation between the funding-mix categories and the reported deposit and borrowing lines.

How fast are Utkarsh deposits growing?

Utkarsh's total deposits grew 7% year on year to Rs 23,869 crore in September 2026 from Rs 22,385 crore in September 2025. Deposits also rose 3% from Rs 23,107 crore in June 2026, after reaching Rs 22,118 crore in December 2025 and Rs 22,635 crore in March 2026.

Utkarsh's credit-to-deposit ratio, which compares credit with deposits, increased to 81% in September 2026 from 75% a year earlier. The presentation also reported a 76% ratio excluding advances against which refinance is raised, but did not disclose the corresponding excluded advance amount.

Utkarsh reported current account and savings account, or CASA, deposits grew 14.2% year on year, while retail term deposits grew 11.8% year on year. Separately, the presentation stated that retail term deposits were Rs 14,172 crore in September 2026, compared with Rs 14,261 crore in June 2026, and labelled their year-on-year growth as 12%.

What is Utkarsh's deposit composition?

Utkarsh reported that CASA plus retail term deposits accounted for 82% of deposits in September 2026, compared with 83% in both March and June 2026. Retail term deposits were the largest disclosed component at 61%, followed by savings deposits at 19%, institutional term deposits at 18% and current deposits at 3%.

CASA represented 21% of deposits in September 2026, unchanged from June 2026 but below 23% in March 2026. Compared with September 2025, retail term deposits increased to 61% from 58%, while institutional term deposits decreased to 18% from 22% and CASA rose to 21% from 20%.

Utkarsh's September 2026 demographic profile showed metropolitan areas at 52% and urban areas at 42% of covered deposits. Semi-urban locations accounted for 5% and rural locations for 2%. The profile excludes digital fixed deposits sourced through fintech platforms and Utkarsh's website.

Are Utkarsh retail term deposits becoming longer dated?

Utkarsh's retail term-deposit tenure mix shifted towards maturities of three years and above, whose share rose to 31% in September 2026 from 7% in March 2023. The share of deposits below three years fell to 69% from 93%, a 24-percentage-point change in the tenure profile.

Utkarsh's disclosed geographical mix was led by Uttar Pradesh at 17.4% in September 2026, followed by Maharashtra at 12.3% and the National Capital Territory of Delhi at 11.9%. Haryana accounted for 7.6%, West Bengal for 6.0% and Punjab for 5.5%; this geographic mix also excludes specified digital fixed deposits.

Utkarsh listed 331 general-banking branches, including 269 branches more than three years old, 31 branches aged one to two years and 31 aged two to three years. The presentation said about 20% of branches were less than three years old and showed no branches in the less-than-one-year category.

What does Utkarsh disclose about deposit costs and expansion plans?

Utkarsh reported a term-deposit cost of 8.1% and a CASA cost of 4.5% in the second quarter of financial year 2027. The presentation did not disclose an overall blended deposit cost, but the two reported category costs differed by 3.6 percentage points.

Utkarsh said it is targeting the top 100 deposit centres in the country and is focused on building a retail franchise. The presentation gives no completion date for that target, while its September 2026 deposit mix included 61% retail term deposits and 82% CASA plus retail term deposits.

Utkarsh disclosed long-term ratings of A- Stable from CARE and A- (Stable) from ICRA, alongside an ICRA A1 rating for its short-term certificate-of-deposit programme. The presentation did not state a target rating, planned issuance amount or expected funding-cost outcome linked to these ratings.

Conclusion

Utkarsh's disclosed funding structure became more deposit-led between March 2020 and September 2026, as the deposit share rose from 66% to 93% and the refinance share fell from 29% to 4%. Total deposits reached Rs 23,869 crore, while retail term deposits made up 61% of the mix and deposits with tenures of at least three years reached 31%.

The next disclosed items to watch are Utkarsh's progress towards its top-100 deposit-centres target and changes in its 81% credit-to-deposit ratio, or 76% excluding advances backed by refinance. Management also reported second-quarter financial year 2027 costs of 8.1% for term deposits and 4.5% for CASA, alongside 7% year-on-year deposit growth in September 2026.