Utkarsh Small Finance Bank has announced its financial results for the first quarter of 2025, showcasing the bank’s performance during the period. Here are the key highlights:
Financial Performance
The bank reported a significant increase in its net profit, which stood at ₹105.46 crore, marking a 42% year-on-year (YoY) growth. The net interest income (NII) also witnessed a substantial jump, rising by 35% YoY to ₹434.29 crore. The bank’s total income grew by 27% YoY to ₹943.18 crore.
Assets and Deposits
Utkarsh Small Finance Bank’s total assets under management (AUM) increased by 24% YoY to ₹24,311 crore. The bank’s deposit base expanded by 25% YoY to ₹20,115 crore, with the current account and savings account (CASA) deposits growing by 31% YoY to ₹5,420 crore. The bank’s CASA ratio stood at 27%, indicating a strong and stable deposit base.
Lending and Credit
The bank’s gross advances rose by 23% YoY to ₹21,270 crore, with a focus on retail lending, including microfinance, MSME, and housing loans. The net non-performing assets (NNPA) ratio decreased to 0.55%, while the provision coverage ratio (PCR) improved to 85.34%. The bank’s credit growth was driven by a 34% YoY increase in microfinance lending and a 26% YoY growth in MSME lending.
Branch Network and Digital Initiatives
Utkarsh Small Finance Bank expanded its branch network to 627 branches across 22 states and 2 union territories. The bank also strengthened its digital infrastructure, with a 55% YoY growth in digital transactions and a 63% YoY increase in mobile banking transactions.
Management Commentary
The bank’s management expressed satisfaction with the Q1 performance, stating that the bank is on track to achieve its business objectives. The management highlighted the bank’s focus on prudent lending, robust risk management, and customer-centric approach as key factors driving growth. The bank aims to continue expanding its footprint, enhancing digital capabilities, and improving operational efficiency to drive long-term growth and profitability.
Overall, Utkarsh Small Finance Bank’s Q1 2025 financial results demonstrate a strong performance, driven by growth in lending, deposit mobilization, and digital initiatives. The bank’s focus on retail lending, risk management, and customer-centric approach positions it well for long-term growth and profitability in the competitive banking sector.