Utkarsh Small Finance Bank Q1 FY25: 30.6% Loan Growth, ₹311 Crore Operating Profit

On August 3, 2024, Utkarsh Small Finance Bank Limited’s Board of Directors approved the financial results for the quarter that ended on June 30, 2024.

For the quarter ending June 30, 2024, Utkarsh Small Finance Bank Limited saw impressive growth. Their gross loan portfolio increased by 30.6% year-on-year to ₹18,798 crore, while deposits rose by 30% year-on-year to ₹18,163 crore, with retail term deposits growing by 48%.

The bank’s gross and net NPAs were 2.78% and 0.26%, respectively. In Q1 FY25, they achieved their highest-ever quarterly operating profit (before provisions) of ₹311 crore, and their profit after tax grew by 27.8% year-on-year to ₹137 crore. The return on assets and return on equity were strong at 2.3% and 18.1%, respectively.

For the quarter ending June 30, 2024, Utkarsh Small Finance Bank Limited saw significant growth in several areas. The bank’s loan portfolio grew by 30.6% year-on-year to ₹18,798 crore, with the share of secured loans increasing to 35% from 34% in March 2024. Gross NPAs rose to 2.78% from 2.51% in March 2024, while net NPAs increased to 0.26% from 0.03%. The provision coverage ratio, including floating provisions, was 91%, with floating provisions reaching ₹169 crore compared to ₹149 crore in March 2024.

Deposits grew by 30% year-on-year to ₹18,163 crore, driven by a 47.7% increase in retail term deposits to ₹8,729 crore. The bank’s credit-deposit (CD) ratio improved slightly to 92.7%. The bank maintained strong capitalisation with a CRAR of 23.18% and Tier 1 capital of 20.39%. Pre-provision operating profit rose by 40.7% year-on-year to ₹311 crore, and profit after tax increased by 27.8% to ₹137 crore.

Return on assets and return on equity were robust at 2.3% and 18.1%, respectively. The bank’s cost-income ratio was 54.1%. It continues to expand, now operating in 26 states and UTs with 916 branches and over 46 lakh customers.

About Utkarsh Small Finance Bank Limited

Utkarsh Small Finance Bank Limited (USFBL) was established on April 30, 2016. The bank specialises in offering banking and financial services, particularly to underserved and unserved communities. Its micro-banking efforts are mainly concentrated in rural and semi-urban areas, while its other services are available throughout the country.

On August 05, 2024, Utkarsh Small Finance Bank Limited’s share price opened at ₹50.00, touching the day’s low at ₹48.42 at 10:22 AM on the NSE.

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