Utkarsh Small Finance Bank credit rating details were disclosed on September 3, 2026, with the lender informing exchanges through a BSE filing that CARE Ratings Limited had assigned and reaffirmed ratings on its Tier II bonds.

CARE assigned CARE A-; Stable to the bank's proposed unsecured, subordinated, redeemable Tier II bonds in the form of non-convertible debentures. The proposed issue has an aggregate rated amount of ₹500 crore.

The rating disclosure was made under Regulations 30, 51 and 55, along with other applicable provisions and Schedule III of the SEBI Listing Regulations.

CARE rating actions on Tier II bonds

The rating agency also reaffirmed its CARE A-; Stable rating on the bank's existing Tier II bonds carrying a rated amount of ₹200 crore. The filing presented the two rating actions as follows:

Rated instrument Rated amount Rating Action
Proposed Tier II bonds ₹500 crore CARE A-; Stable Assigned
Existing Tier II bonds ₹200 crore CARE A-; Stable Reaffirmed

According to the explanation included in the filing, instruments carrying a CARE A- rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations and to carry low credit risk. The minus suffix indicates the instrument's comparative standing within the rating category.

Proposed private placement

The bank referred to its earlier intimation dated June 20, 2026, when its board had approved issuing the proposed Tier II NCDs aggregating up to ₹500 crore through private placement.

The issuance may take place in one or more tranches and remains subject to regulatory, statutory and other approvals that may be necessary. The filing did not specify the issue schedule, tranche sizes, coupon rate or maturity terms.

Utkarsh Small Finance Bank said further rating details could be accessed through CARE's website. The disclosure will also be made available on the bank's website. Its equity shares trade under BSE scrip code 543942 and NSE symbol UTKARSHBNK.

Source: BSE corporate announcement.