Utkarsh Small Finance Bank Gets Board Nod To Raise Up To Rs 950 Crore Through Rights Issue

Utkarsh Small Finance Bank Ltd received approval to raise up to Rs 950 crore via rights issue from its board of directors on Wednesday, according to an exchange filing on BSE.

"The Board of Directors of the Bank, at its meeting held today, i.e. Oct. 01, 2025, has inter alia, considered and approved the issuance of equity shares of the Bank for an amount not exceeding Rs 950 crore by way of a rights issue to the eligible equity shareholders of the Bank, their respective renouncee(s) and the specific investor(s), if any, as on the record date", the filing stated.

The company further informed that the details of the rights issue, such as determination of the rights issue price, rights entitlement ratio, record date, terms of payment of the rights issue will be determined in an upcoming meeting, expected to be held on Oct. 8.

Utkarsh Small Finance Bank was incorporated on April 30, 2016, and is engaged in providing banking and financial services with a focus on providing microfinance to the underserved and unserved sections of the country. The Bank’s lending activities are primarily focused in rural and semi-urban locations of the country while its other services are spread across the country.

The bank commenced its operations on January 23, 2017, pursuant to the small finance banking licence granted by RBI on November 25, 2016.

Shares of Utkarsh Small Finance Bank closed 3.47% higher at Rs 21.76 apiece on the National Stock Exchange before the announcement, compared to a 0.92% advance in the benchmark Nifty. The share price has fallen 52.49% in the last 12 months and 36% on a year-to-date basis.

Out of the two analysts tracking the company, one has a 'buy' rating on the stock the other recommends 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 47%.