Utkarsh Small Finance Bank Ltd. (USFB), headquartered in Varanasi, commenced operations in 2017 and has since established itself as a key player in the small finance banking sector. The bank provides a comprehensive suite of financial services, including savings and deposit accounts, microbanking loans, retail loans, housing loans, and gold loans.
In a strategic move to bolster its financial position, the board of Utkarsh SFB sanctioned a capital raise of up to ₹750 crore through a share sale on February 26, 2025.
The fundraising initiative will be executed via qualified institutions placement, preferential issuance, private placements, a further public offering, or other permissible avenues in one or multiple tranches. This capital infusion is subject to requisite shareholder and regulatory approvals. However, the bank has yet to disclose specific details regarding the deployment of these funds.
The bank’s financial performance for the third quarter reflected a stark downturn, with a net loss of ₹168 crore, a sharp contrast to the ₹116 crore profit recorded in the corresponding quarter of the previous financial year. Despite this setback, net interest income remained largely stable at ₹480.13 crore, compared to ₹482.3 crore in the same period last year.
In a post-earnings conference call, Managing Director and Chief Executive Officer Govind Singh reassured stakeholders of the bank’s long-term growth trajectory, stating that the current expansion has endowed Utkarsh SFB with a robust franchise, sufficient to meet its growth objectives. As a result, the bank anticipates minimal expansion of its branch network in FY26.
Utkarsh SFB’s microbanking operations are deeply entrenched in rural and semi-urban regions, extending financial support through the Joint Liability Group model for individuals and micro-enterprises. The bank remains steadfast in its mission to drive economic empowerment by providing accessible and structured financial solutions to those in need.
At 10:34 AM on February 28, 2025, Utkarsh Small Finance Bank Ltd. shares traded 2.46% down at ₹24.60 per share on the NSE.
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Published on: Feb 28, 2025, 2:39 PM IST
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