Utkarsh Small Finance Bank Limited — PPTs, 02-08-2025: Investor Presentation

**1. Financial Highlights:**

Utkarsh SFB saw Gross Loan Portfolio up 2.3% YoY to ₹19,224 Cr. Total Deposits grew 18.3% YoY to ₹21,489 Cr, led by retail term deposits. However, the bank reported a Net Loss of ₹239 Cr (vs ₹137 Cr profit Q1FY25) due to a 30% NII drop and 228% surge in provisions. Asset quality deteriorated sharply: Gross NPA hit 11.4% (vs 2.8%) and Net NPA 5.0% (vs 0.3%). NIM compressed to 5.9%.

**2. Strategic Initiatives & Growth Drivers:**

The bank focuses on diversifying assets, increasing secured loans to 45% of portfolio. Retail deposit growth and boosting fee income via cross-selling are key. Significant tech investments (new core banking, AI/ML) target efficiency and digital offerings.

**3. Business Developments:**

Network expanded to 1,099 outlets. JLG disbursements slowed due to asset quality concerns, with focus shifting to collections and higher-yield products (MSME, Housing, CE & CV loans) for yield optimization.

**4. Market Position & Competitive Advantage:**

Utkarsh SFB leverages its strong rural/semi-urban presence and deep local market understanding. Its diversified network aids retail asset expansion, highlighting an adaptable journey from microfinance to SFB.

**5. Investor Implications:**

The quarter flags significant asset quality and profitability challenges, particularly in JLG, indicating execution risk. Yet, the strategic shift to secured lending and robust retail deposit growth are positive. Tech investments offer long-term growth potential.