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UTKARSHBNK - Utkarsh Small F.

📊 NSE: UTKARSHBNK 🏢 Banks - Private Sector 📅 Last Updated: 12/14/2025 14:48

📢 Recent Corporate Announcements

Utkarsh SFB Shareholders Approve Director Appointments and CEO Remuneration with >99% Majority

🟢 POSITIVE ⭐ 6/10

MANAGEMENT 📅 02 Mar 2026, 06:30 PM

Utkarsh Small Finance Bank has announced the successful passage of three key resolutions via postal ballot with over 99% approval for each. Shareholders approved the appointment of Dr. Ram Jass Yadav as a Non-Executive Director and the re-appointment of Mr. Ajay Kumar Kapur as an Independent Director. Additionally, the remuneration for MD & CEO Mr. Govind Singh for the financial year 2025-26 was approved. The voting saw participation from 610 members representing approximately 36.84% of the total equity shares, showing strong institutional support.

Appointment of Dr. Ram Jass Yadav as Non-Executive Director approved with 99.95% votes in favour
Re-appointment of Mr. Ajay Kumar Kapur as Independent Director passed with 99.88% majority
Remuneration for MD & CEO Govind Singh for FY 2025-26 approved by requisite majority
Total of 95.22 crore votes were cast, representing a 36.84% turnout of the total share capital

💡 The high approval ratings indicate strong investor confidence in the bank's leadership and strategic direction. Investors should view this management continuity as a positive sign for the bank's operational stability.

Utkarsh Small Finance Bank Director Muralidharan Rajamani Completes 5-Year Term

🟡 NEUTRAL ⭐ 3/10

MANAGEMENT 📅 02 Mar 2026, 11:47 AM

Mr. Muralidharan Rajamani has stepped down as a Non-Executive Non-Independent Director of Utkarsh Small Finance Bank effective March 02, 2026. This follows the completion of his first five-year term which concluded on March 01, 2026. The director opted not to seek reappointment for a second term, citing personal commitments. This transition is a routine board change and the bank has formally acknowledged his contributions during his tenure.

Mr. Muralidharan Rajamani completed his 5-year term as a Non-Executive Non-Independent Director.
The cessation of his directorship is effective from March 02, 2026.
The director declined to offer himself for reappointment due to personal commitments.
The bank has placed on record its appreciation for his contributions during his tenure.

💡 This is a routine management change due to the completion of a director's term and does not require any immediate action. Investors should monitor future board appointments to ensure continued governance stability.

Utkarsh Small Finance Bank CHRO Hitain Sharma Resigns Effective February 27, 2026

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 27 Feb 2026, 06:36 PM

Utkarsh Small Finance Bank has announced the resignation of Mr. Hitain Sharma, who served as the Chief Human Resource Officer (CHRO) and a member of the Senior Management Personnel. The resignation became effective at the close of business hours on February 27, 2026. According to the regulatory filing, Mr. Sharma is leaving the bank to pursue other career opportunities. The bank has complied with SEBI Listing Regulations by disclosing this change in its senior leadership team.

Mr. Hitain Sharma has resigned from his position as Chief Human Resource Officer (CHRO).
The resignation is effective from the close of business hours on February 27, 2026.
The stated reason for the departure is to pursue other career opportunities.
The bank disclosed the change under Regulation 30 of the SEBI Listing Regulations.

💡 Investors should monitor the bank's upcoming announcements for the appointment of a successor to ensure leadership continuity in the HR department. This resignation appears to be a routine career move and is unlikely to impact the bank's financial performance in the short term.

Utkarsh SFB Convenes Shareholder Meeting on March 28, 2026 for Merger with Promoter Entity

🟢 POSITIVE ⭐ 9/10

M&A 📅 24 Feb 2026, 08:13 PM

Utkarsh Small Finance Bank has scheduled a court-convened meeting on March 28, 2026, to seek shareholder approval for the merger of its promoter entity, Utkarsh CoreInvest Limited, into the bank. This reverse merger is a regulatory requirement for Small Finance Banks to simplify corporate structures and has already received 'no-objection' clearances from the RBI and stock exchanges in 2025. The NCLT Allahabad Bench directed this meeting to finalize the amalgamation process under Sections 230-232 of the Companies Act. Shareholders as of the March 21, 2026 cut-off date are eligible to vote on the proposal.

Court-convened meeting scheduled for March 28, 2026, to approve the Scheme of Amalgamation.
RBI granted its 'no-objection' to the proposed merger on January 02, 2025.
BSE and NSE provided their no-objection letters in July 2025 following the initial proposal.
Remote e-voting period is set from March 25, 2026, to March 27, 2026.
The merger aims to consolidate Utkarsh CoreInvest Limited (Transferor) into Utkarsh Small Finance Bank (Transferee).

💡 Investors should view this as a positive regulatory milestone that simplifies the bank's ownership structure and removes the holding company discount. Shareholders are advised to participate in the e-voting process to support the amalgamation as it aligns with long-term compliance goals.

Utkarsh Small Finance Bank to Attend Kotak Investor Conference on February 23, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 16 Feb 2026, 05:39 PM

Utkarsh Small Finance Bank has announced its participation in Kotak’s Annual Flagship Investor Conference, 'Chasing Growth 2026'. The event is scheduled for February 23, 2026, in Mumbai, featuring both group and one-to-one interactions. The bank's management will engage with institutional investors and analysts between 10:00 AM and 03:00 PM IST. The bank has clarified that no unpublished price sensitive information will be shared during these meetings.

Participation in Kotak’s Annual Flagship Investor Conference on February 23, 2026
Interaction format includes both Group Conference and One-to-One meetings
Scheduled meeting window is from 10:00 AM to 03:00 PM IST
In-person event to be held at Grand Hyatt, Kalina, Mumbai
Bank confirms only public domain information will be discussed during the sessions

💡 Investors should monitor for any investor presentations or post-meet transcripts that the bank may release following the conference. This is a routine investor relations activity and does not necessitate any immediate action.

Utkarsh SFB Receives NCLT Order for Amalgamation; Meetings Set for March 28, 2026

🟢 POSITIVE ⭐ 8/10

M&A 📅 13 Feb 2026, 06:01 PM

Utkarsh Small Finance Bank (USFB) has received an order from the NCLT Allahabad Bench to proceed with its Scheme of Amalgamation with its promoter entity, Utkarsh CoreInvest Limited. The NCLT has directed the bank to hold meetings for equity shareholders and unsecured creditors on March 28, 2026, to seek approval for the merger. This reverse merger is a key regulatory step to eliminate the holding company structure and simplify the shareholding pattern. The successful completion of this process is expected to improve corporate governance and meet RBI's licensing conditions.

NCLT order dated February 11, 2026, received via email on February 13, 2026.
Equity Shareholders meeting scheduled for March 28, 2026, at 12:30 PM via Video Conferencing.
Unsecured Creditors meeting scheduled for March 28, 2026, at 3:30 PM via Video Conferencing.
The scheme involves the merger of Utkarsh CoreInvest Limited into Utkarsh Small Finance Bank.

💡 Shareholders should participate in the upcoming meeting on March 28 to vote on the scheme. This structural simplification is generally viewed favorably by the market as it removes the holding company discount.

Utkarsh SFB Reports INR 375 Cr Net Loss in Q3 FY26 Amid Microfinance Portfolio Recalibration

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 06 Feb 2026, 04:36 PM

Utkarsh Small Finance Bank reported a net loss of INR 375 crores for Q3 FY26, driven by elevated credit costs and legacy stress in the microfinance segment. The bank is undergoing a strategic shift, with secured lending now comprising 50% of the loan book compared to 41% a year ago. Despite a 16% contraction in the JLG portfolio, the Micro Banking Business Loan (MBBL) segment grew 80% YoY, showing resilience. Management maintains a strong capital position with a 20.1% CAR following a recent INR 950 crore rights issue.

Reported a net loss of INR 375 crores for Q3 FY26 due to legacy microfinance stress and high credit costs.
Secured lending increased to 50% of the total loan book, up from 41% in the previous year.
Micro Banking Business Loan (MBBL) portfolio grew 80% YoY and 38% QoQ, now 19% of micro banking loans.
Capital Adequacy Ratio stands strong at 20.1% supported by a successful INR 950 crore rights issue in Nov-2025.
Retail Term Deposits grew 24% YoY, helping improve the CASA + RTD ratio to 82% from 70% YoY.

💡 Investors should exercise caution due to the current quarterly loss but monitor the bank's successful pivot toward secured assets and improved collection efficiency of 99.5%. The strong capital buffer provides a safety net while the bank targets a return to 15% ROE by FY28.

Utkarsh Small Finance Bank Releases Q3 FY26 Earnings Call Audio Recording

🟡 NEUTRAL ⭐ 4/10

EARNINGS 📅 02 Feb 2026, 10:17 PM

Utkarsh Small Finance Bank has made the audio recording of its earnings conference call for the quarter and nine months ended December 31, 2025, available to the public. The call, held on February 02, 2026, followed the release of the bank's un-audited financial results. This disclosure provides investors with access to management's detailed commentary on the bank's operational performance and future outlook. The bank has also confirmed that a written transcript will be provided in due course as per regulatory requirements.

Audio recording of the Q3 FY26 earnings call is now accessible via the bank's official website.
The call discussed financial performance for the quarter and nine-month period ending December 31, 2025.
Investor presentation for the same period was previously submitted to exchanges on February 02, 2026.
A formal written transcript of the proceedings will be filed subsequently under SEBI Listing Regulations.

💡 Investors should review the audio recording or upcoming transcript to understand management's perspective on credit growth and asset quality trends. This is a routine disclosure and does not contain new financial data beyond what was in the earnings release.

Utkarsh SFB Reports Zero Deviation in Utilization of ₹949.08 Cr Rights Issue Funds

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 02 Feb 2026, 05:38 PM

Utkarsh Small Finance Bank has submitted its statement of deviation for the quarter ended December 31, 2025, regarding funds raised via a Rights Issue. The bank successfully raised ₹949.08 Crores on November 05, 2025, to strengthen its Tier I capital base. The filing confirms that 100% of these funds have been utilized as per the objects specified in the offer document. The Audit Committee has reviewed and verified that there are no deviations or variations in fund usage.

Raised ₹949.08 Crores through a Rights Issue on November 05, 2025
Reported zero deviation or variation in fund utilization for the quarter ended Dec 31, 2025
Full amount of ₹949.08 Crores deployed to augment Tier I capital base
Audit Committee reviewed and approved the compliance statement on February 02, 2026

💡 Investors can take comfort in the transparent and planned utilization of capital. No specific action is needed as this is a routine regulatory compliance filing.

Utkarsh SFB Reports Q3 FY26 Net Loss of ₹375 Crore; GNPA Improves Sequentially to 11%

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 02 Feb 2026, 05:09 PM

Utkarsh Small Finance Bank reported a net loss of ₹375 crore for Q3 FY26, widening from a loss of ₹168 crore in the previous year's quarter. The bank is undergoing a strategic shift, increasing its secured lending mix to 50% of the portfolio while deliberately contracting its unsecured micro-banking book due to asset quality stress. Despite the bottom-line pressure, there are signs of stabilization as GNPA improved sequentially from 12.4% to 11.0%. The bank maintains a strong capital adequacy ratio of 20.11% following a ₹950 crore rights issue in November 2025, providing a buffer for its ongoing transition.

Net loss of ₹375 crore in Q3 FY26 compared to a loss of ₹168 crore in Q3 FY25.
Gross NPA improved to 11.0% from 12.4% in Q2 FY26, though it remains elevated compared to 6.2% YoY.
Secured lending share increased to 50% of the gross loan portfolio from 41% a year ago.
Capital Adequacy Ratio (CRAR) stands robust at 20.11% following a successful ₹950 crore rights issue.
Retail Term Deposits grew 23.8% YoY to ₹12,586 crore, with the CASA + RTD ratio strengthening to 82%.

💡 Investors should maintain a cautious stance as the bank navigates high credit costs and a structural pivot toward secured assets. While sequential asset quality improvement and strong capital buffers are encouraging, a return to sustainable profitability may take several quarters.

Utkarsh SFB Q3 FY26: Reports ₹963 Cr Net Loss as Gross NPA Spikes to 11.0%

🔴 NEGATIVE ⭐ 9/10

EARNINGS 📅 02 Feb 2026, 05:03 PM

Utkarsh Small Finance Bank reported a significant net loss of ₹963 crore for Q3 FY26, a sharp reversal from the ₹21 crore profit in the year-ago period. The bank's asset quality deteriorated sharply, with Gross NPA rising to 11.0% from 6.2% YoY, primarily due to stress in the Joint Liability Group (JLG) microfinance segment. While the Gross Loan Portfolio declined 3.9% YoY to ₹18,306 crore, the bank successfully increased its share of secured loans to 50%. Deposits grew 4.5% YoY to ₹21,087 crore, supported by an improved CASA ratio of 21.9%.

Net Loss of ₹963 crore in Q3 FY26 vs ₹21 crore profit in Q3 FY25.
Gross NPA increased to 11.0% from 6.2% YoY; Net NPA rose to 4.5% from 2.5%.
JLG loan portfolio contracted by 34.1% YoY to ₹6,419 crore due to collection challenges.
Secured loans now constitute 50% of the Gross Loan Portfolio, up from 41% YoY.
Cost to Income ratio spiked to 96.9% compared to 59.8% in the previous year.

💡 Investors should exercise caution as the bank is undergoing severe asset quality stress and significant losses in its micro-banking segment. While the strategic shift toward secured lending and non-JLG products is a positive long-term move, the immediate focus must remain on NPA management and recovery.

Utkarsh SFB Reports Q3 FY26 Net Loss of ₹375 Cr; Gross NPA Surges to 11.05%

🔴 NEGATIVE ⭐ 9/10

EARNINGS 📅 02 Feb 2026, 04:58 PM

Utkarsh Small Finance Bank reported a significant net loss of ₹375.02 crore for the quarter ended December 31, 2025, continuing a trend of losses from the previous quarter. The bank's asset quality has deteriorated sharply, with Gross NPA rising to 11.05% from 6.17% in the same period last year. Total income fell to ₹901.71 crore, while provisions remained extremely high at ₹446.41 crore due to stress in the retail lending segment. The bank's capital adequacy ratio remains above regulatory requirements at 20.11%, but the rapid erosion of profitability is a major concern.

Net Loss of ₹375.02 crore in Q3 FY26 compared to a profit in the year-ago period.
Gross NPA increased significantly to 11.05% from 6.17% YoY, indicating severe asset quality stress.
Net NPA rose to 4.48% from 2.50% YoY, despite high provisioning of ₹446.41 crore.
Retail segment reported a massive segmental loss of ₹485.53 crore for the quarter.
Capital Adequacy Ratio (CAR) declined to 20.11% from 21.10% on a year-on-year basis.

💡 Investors should exercise extreme caution as the bank is facing a severe spike in bad loans and consecutive quarterly losses. The sharp deterioration in the retail book suggests deep-rooted credit issues that may require a long recovery period.

Utkarsh SFB Seeks Approval for Director Appointments and MD Remuneration of ₹2.57 Crore

🟡 NEUTRAL ⭐ 6/10

MANAGEMENT 📅 29 Jan 2026, 03:51 PM

Utkarsh Small Finance Bank has issued a postal ballot notice to seek shareholder approval for key leadership and compensation matters. The bank is proposing the appointment of Dr. Ram Jass Yadav as a Non-Executive Director and the re-appointment of Mr. Ajay Kumar Kapur as an Independent Director. Significantly, the bank seeks approval for a fixed remuneration of up to ₹2.57 crore for MD & CEO Mr. Govind Singh for FY 2025-26. The e-voting process is scheduled to conclude on February 28, 2026, with results expected by early March.

Proposed fixed pay of up to ₹2.57 crore for MD & CEO Govind Singh for FY 2025-26
Appointment of Dr. Ram Jass Yadav as Non-Executive Director for a 5-year term starting Jan 2026
Re-appointment of Mr. Ajay Kumar Kapur as Independent Director for a second 3-year term
E-voting period set from January 30, 2026, to February 28, 2026
Resolutions are in compliance with RBI guidelines and the Banking Regulation Act

💡 Investors should monitor the voting results to ensure management stability and verify that executive compensation remains aligned with the bank's long-term performance. No immediate portfolio changes are required based on these routine governance updates.

Utkarsh Small Finance Bank Board Meeting on Feb 02, 2026, for Q3FY26 Financial Results

🟡 NEUTRAL ⭐ 4/10

BOARD_MEETING 📅 28 Jan 2026, 07:10 PM

Utkarsh Small Finance Bank has scheduled its Board Meeting for February 02, 2026, to approve the un-audited financial results for the quarter and nine months ended December 31, 2025. An earnings conference call will follow the meeting at 5:00 PM IST on the same day to discuss performance metrics. The trading window for insiders will remain closed until February 05, 2026, as per regulatory requirements. This is a routine but essential event for shareholders to evaluate the bank's growth and asset quality.

Board meeting scheduled for February 02, 2026, to approve Q3 and 9M FY26 results.
Earnings conference call set for 17:00 hrs IST on February 02, 2026.
Trading window for designated persons to re-open on February 05, 2026.
Top management including MD & CEO Govind Singh and CFO Sarjukumar Simaria will lead the call.

💡 Investors should monitor the results on February 02 for updates on Net Interest Margins and Gross NPA levels. Pay close attention to management commentary regarding micro-banking growth and credit cost outlook.

Utkarsh Small Finance Bank Submits Quarterly SEBI Compliance Certificate

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 06 Jan 2026, 10:15 AM

Utkarsh Small Finance Bank has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, provided by KFin Technologies Limited, covers the period from October 1, 2025, to December 31, 2025. This filing confirms that the bank has processed share dematerialization requests and updated depository records accordingly. Such filings are standard procedural requirements for all listed entities in India to ensure transparency in shareholding records.

Compliance certificate submitted for the quarter ended December 31, 2025
Issued by Registrar and Share Transfer Agent, KFin Technologies Limited
Confirms adherence to SEBI (Depositories and Participants) Regulations, 2018
Covers equity shares and various listed debt instruments (Scrip Codes: 543942, 958095, etc.)

💡 No action is required as this is a routine regulatory filing confirming administrative compliance regarding share certificates.

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💰 Financial Performance

Revenue Growth by Segment

The MSME loan book grew 33% YoY to INR 4,164 Cr. Housing loans increased 21% YoY to INR 947 Cr. Commercial Vehicle (CV) and Construction Equipment (CE) financing rose 6% YoY to INR 1,144 Cr. The Business Banking Group (BBG) portfolio grew 32% YoY. Conversely, the overall gross loan book contracted 2.3% YoY due to a sharp decline in the Joint Liability Group (JLG) microfinance portfolio.

Geographic Revenue Split

The microfinance portfolio is highly concentrated in two states: Bihar at 45% and Uttar Pradesh at 28% as of June 30, 2025, totaling 73% of the segment. The bank is actively expanding retail lending in new geographies to diversify this concentration.

Profitability Margins

The bank reported a net loss of INR 239 Cr in Q1 FY2026, a significant decline from a PAT of INR 24 Cr in FY2025 and INR 498 Cr in FY2024. Net Interest Margins (NIM) are under pressure due to a shift toward lower-yielding non-microfinance products and elevated operating expenses. Return on Equity (RoE) target for the next 2-3 years is ~15%.

EBITDA Margin

Operating Profit (PPoP) stood at INR 92 Cr in Q1 FY2026 but turned to a loss of INR 3 Cr in Q2 FY2026. This decline is driven by a compression in lending spreads as the yield on advances dropped from 18.8% in Q2 FY2025 to 15.0% in Q2 FY2026, while the cost of funds remained high at 8.3%.

Capital Expenditure

The bank is in the process of raising equity capital up to INR 750 Cr in the near term to maintain a prudent capitalization profile and absorb stress from deteriorating asset quality. Historical capital plus reserves stood at INR 2,975 Cr as of March 31, 2025.

Credit Rating & Borrowing

ICRA downgraded the long-term rating to [ICRA]A (Negative) from [ICRA]A+ due to deteriorating asset quality. The short-term rating for Certificates of Deposit was reaffirmed at [ICRA]A1+. The cost of funds stood at 8.3% as of Q2 FY2026, up from 8.2% YoY.

⚙️ Operational Drivers

Raw Materials

For banking operations, 'raw materials' are deposits and borrowings. Deposits reached INR 21,566 Cr (March 2025), with a cost of funds of 8.3%. Retail deposits (RTD) grew 33.5% YoY.

Import Sources

Not applicable for banking operations; funding is sourced domestically from retail and institutional depositors across 27 States and Union Territories.

Key Suppliers

Not applicable; the bank sources funds from over 4.9 million customers and institutional lenders.

Capacity Expansion

Current network includes 1,092 banking outlets. Approximately 37% of General Banking (GB) branches are less than 2 years old and are considered underutilized, representing significant latent capacity for deposit mobilization.

Raw Material Costs

Interest expense on deposits and borrowings is the primary cost. Deposits grew 23.4% YoY to INR 21,566 Cr. The bank is focusing on granular retail deposits to build a stable and lower-cost funding source.

Manufacturing Efficiency

Operational efficiency is measured by the Cost-to-Income ratio, which increased to 61.6% as of March 31, 2025, compared to 56.4% in the previous year, reflecting heavy investments in infrastructure and technology.

Logistics & Distribution

Distribution is managed through 1,092 outlets. The bank is splitting larger micro-banking branches to improve oversight and field-level discipline.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

The bank aims to achieve this CAGR by pivoting toward secured lending (target >50% of book), graduating ~12 Lac eligible JLG customers to Micro Business Banking Loans (MBBL), and scaling 'Star Products' like Micro LAP which offers 18% yields. It is also implementing the 'Utkarsh 2.0' technology project to improve sourcing and monitoring efficiency.

Products & Services

Joint Liability Group (JLG) loans, Micro Business Banking Loans (MBBL), Micro Loan Against Property (LAP), MSME Retail Assets, Housing Loans, Commercial Vehicle (CV) and Construction Equipment (CE) financing, and various Savings/Current account options.

Brand Portfolio

Utkarsh Small Finance Bank

New Products/Services

Micro LAP and MBBL are the primary new growth drivers. Micro LAP yields are ~18%, significantly higher than standard MSME yields of 13.4%.

Market Expansion

The bank is targeting the top 100 locations for General Banking branch expansion to facilitate deposit mobilization and is expanding retail lending into new geographies to reduce UP/Bihar concentration.

Market Share & Ranking

The bank is described as having one of the largest banking networks among Small Finance Banks (SFBs) in India.

Strategic Alliances

The bank utilizes Business Correspondents (BC) for JLG lending, which currently accounts for a small portion of the gross loan book.

🌍 External Factors

Industry Trends

The MFI industry is currently facing 'tightened guardrails' and regulatory transitions, leading to a temporary slowdown in disbursements and higher credit costs. The industry is shifting toward secured retail assets to mitigate unsecured lending risks.

Competitive Landscape

Competes with other SFBs and NBFC-MFIs. As a bank, Utkarsh has a competitive advantage in funding access compared to smaller NBFC players during periods of market stress.

Competitive Moat

The bank's moat is built on its deep microfinance expertise and rural reach established since 2009. This legacy provides a 'first-mover advantage' and strong brand recall in underpenetrated regions, though this is currently tested by high credit costs.

Macro Economic Sensitivity

Highly sensitive to rural economic health and inflation in North India, particularly Bihar and UP, which affects the repayment capacity of JLG borrowers.

Consumer Behavior

There is a visible trend of microfinance customers 'graduating' from group-based JLG loans to individual business loans (MBBL).

Geopolitical Risks

Minimal direct impact, but regional political instability in key operating states could disrupt collection activities.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI regulations for Small Finance Banks, including a 15% CRAR requirement and specific MFI sector 'guardrails' regarding borrower indebtedness and selection criteria.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'seasoning' of the newer non-microfinance portfolio (MSME, Housing, CV/CE), which has scaled rapidly in 2-3 years and may see rising GNPA (already increased from 1.2% to 3.1% in one year).