Utkarsh Small Finance Bank Q1 Results: Profit jumps 20% YoY to Rs 107 Cr

The D-street began the day with a mixed performance, as the Sensex and Nifty commenced trading slightly lower. However, the trading session wrapped up on a positive note with both the Sensex and Nifty registering gains of 0.23% and 0.32%, respectively.

Established on April 30, 2016, Utkarsh Small Finance Bank Limited specializes in delivering banking and financial services, with a primary emphasis on serving the underserved and unserved segments.

While its microfinance lending primarily targets rural and semi-urban areas, its broader range of services extends nationwide. USFBL began operations on January 23, 2017.

On August 08, 2023, the company announced its Q1FY24 performance. Details are below:

During Q1FY24, the company achieved a remarkable 26.09% growth in its top line, reaching Rs 720 crore compared to the same quarter of the previous year. The financing profit also witnessed a notable expansion, standing at Rs 53 crore reflecting a robust growth of 39.47% compared to Q1FY23.

Furthermore, the company’s bottom line witnessed an impressive surge of 21.34% from the corresponding quarter of the previous year, reaching Rs 108 crore.

Overall, these results suggest that the company experienced strong growth in both its revenue and profitability during the first quarter of FY24. 

Other key highlights:

• The loan portfolio demonstrated remarkable growth, expanding by 31.4% YoY to reach Rs 14,394 crore. Deposits also experienced a substantial increase, growing by 35.6% YoY to Rs 13,967 crore.
• Notably, the bank exhibited strong asset quality, evident in its net NPAs standing at a commendable 0.33% as of June 30, 2023.
• Further expanding its footprint, the bank inaugurated 21 new banking outlets in Q1, FY24, underscoring its commitment to expansion and enhanced customer accessibility.

The bank’s IPO attracted strong investor enthusiasm across various categories, including QIB, NII and RII. The IPO witnessed a remarkable subscription, surpassing 100 times the offered shares.

In volatile market sentiment, the shares of Utkarsh Small Finance Bank Limited experienced a decline of 2.23%. This drop was linked to worldwide financial shifts, including Moody’s downgrading ratings and Italy’s implementation of a windfall tax. 

Keep a close eye on this trending stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.