Utkarsh Small Finance Bank reports impressive growth in Q3, FY 2023-24 financial results

The Board of Directors of Utkarsh Small Finance Bank Limited has approved the Limited Review Financial Results for the quarter and nine months ending December 31, 2023. The meeting, held on January 27, 2024, unveiled a significant growth trajectory for the bank in the third quarter of the fiscal year 2023-24.

Key Financial Highlights: A Surge in Growth and Profitability

At the forefront of the results is the 30.8% year-over-year (YoY) increase in the Gross Loan portfolio, reaching an impressive ₹16,407 crore. This growth is particularly noteworthy in the micro-banking loan sector, which saw a 15.6% YoY increase, surpassing the ₹10,000 crore mark. Additionally, the bank reported a robust 17.6% YoY increase in deposits, amounting to ₹15,111 crore, with Retail Term Deposits (RTD) growing by a staggering 45.8% YoY to ₹7,228 crore.

Utkarsh Small Finance Bank also reported a commendable Net Non-Performing Assets (NPA) ratio of just 0.19% as of December 31, 2023. Moreover, the bank’s Profit After Tax (PAT) witnessed a 24.1% YoY increase to ₹116.06 crore in Q3, FY24, and a 24.8% increase to ₹337.97 crore for the nine-month period.

Utkarsh Small Finance Bank Announces Strong Quarter with Significant Loan Portfolio Expansion

Maintaining a Strong Financial Position

The bank has maintained a healthy Return on Assets (RoA) and Return on Equity (RoE), standing at 2.3% and 18.5% respectively, during the first nine months of FY24. This reflects the bank’s strong financial position and its commitment to investing in people, presence, products, processes, and technology. The bank’s Capital to Risk (Weighted) Assets Ratio (CRAR) stands comfortably at 23.18%.

Expanding Reach and Services

The bank’s presence now spans 26 States & Union Territories, with 880 banking outlets as of December 31, 2023. Mr. Govind Singh, MD, and CEO of Utkarsh Small Finance Bank, emphasized the bank’s continuous expansion and strengthening of products and channels. Despite a hardened interest rate environment, the bank successfully improved its Net Interest Margins (NIMs) and maintained cost efficiency.

About Utkarsh Small Finance Bank Limited

Established in 2016, Utkarsh Small Finance Bank Limited, is a prominent player in providing banking and financial services, particularly focused on serving the underserved and unserved sections of society. The bank offers a diverse range of financial products, including microfinance loans, MSME Loans, Housing Loans, and various deposit products, backed by digital services and a wide network of ATMs and Micro ATMs.

Utkarsh Small Finance Bank Limited’s results for Q3, FY 2023-24, demonstrate a strong and healthy financial performance, indicative of the bank’s successful strategy in expanding its loan portfolio and deposit base. Their focus on digital presence and customer-centric products places them in a strong position for continued growth in the Indian banking sector.