Utkarsh Small Finance Bank Limited — Updates, 14-02-2025: Press Release

Gross loan portfolio of Utkarsh Small Finance Bank has risen 16.2% year-on-year to ₹19,057 crore, while deposits have surged 33.5% to ₹20,172 crore, driven by a robust 40.6% growth in retail term deposits. The bank's operating profit pre-provisions for the nine months ended December 31, 2024, stands at ₹773 crore, an 8.1% increase compared to the previous year. However, profit after tax has sharply declined to ₹21 crore from ₹338 crore last year, reflecting challenges in the micro-banking sector due to tighter credit supply.

Notably, gross non-performing assets (NPAs) have increased to 6.17%, up from 3.88% in the previous quarter, alongside net NPAs climbing to 2.50%. Despite these setbacks, the bank's capital adequacy ratio remains healthy at 21.10%. The management indicates a positive outlook with expectations of improved collection efficiency and a strategic focus on securing loans, which now constitute 41% of the total portfolio, up from 34% in March 2024. As such, investors should monitor the bank's operational adjustments closely in the upcoming quarters.