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

The Board of Directors of Utkarsh Small Finance Bank has approved the financial results for the quarter and nine months ended December 31, 2024. Key highlights include a 16.2% year-on-year growth in the gross loan portfolio, reaching ₹19,057 crore, and deposits increasing by 33.5% to ₹20,172 crore, driven primarily by a 40.6% surge in retail term deposits. The bank's operating profit for the first nine months of FY25 was ₹773 crore, an 8.1% increase from the previous year, but the profit after tax has decreased significantly to ₹21 crore from ₹338 crore. Gross NPAs have risen to 6.17%, reflecting tighter credit conditions in micro-banking, while the net NPAs rose to 2.50%. The bank continues to maintain a healthy capital base with a CRAR of 21.10%. The CEO noted that despite challenges, there is an expectation for improved collection efficiency moving forward. Overall, there are both challenges and opportunities visible in the bank’s performance, suggesting a need for close monitoring by investors.