Utkarsh Small Finance Bank Reports Rs 38 Cr Profit For Apr-Sept FY22

Utkarsh Small Finance Bank (SFB) on Monday reported nearly 52 per cent decline in net profit at Rs 37.67 crore for the half year ended September 2021 of the current fiscal year on higher provisions.

The IPO-bound SFB had posted a net profit of Rs 77.87 crore in the same period a year ago.

"The bank's profit after tax (PAT) for H1FY22 was at Rs 37.67 crore after making adequate provisions for sub-standard assets. The policy on provisioning of sub-standard assets is higher than prescribed by RBI," Utkarsh SFB said in a release.

Total income was higher at Rs 953.78 crore during April-September 2021-22 from Rs 827.60 crore in the same period of 2020-21.

Net advances increased 22.04 per cent year-on-year to Rs 8,062.88 crore as of September 30, 2021. Total deposits were up 35.17 per cent to Rs 8,068.73 crore, it said.

On the asset front, bank's gross non-performing assets was at Rs 700.79 crore (8.27 per cent of gross advances by September 2021) and net NPA was at Rs 286.10 crore (3.55 per cent).

"A resolute approach is the way forward. It is pertinent that we as an SFB remain agile and nimble to overcome the challenges that come our way.

"The bank has filed its DRHP with SEBI and the stock exchanges in March 2021 for raising up to Rs 1,350 crore through fresh issuance of equity shares and offer for sale," Govind Singh, MD and CEO, said.

During the half year ended September 30, 2021, the Varanasi-based SFB issued 47,169,809 equity shares having face value of Rs 10 each at a premium of Rs 21.80 each for cash aggregating to Rs 149.99 crore.

The bank also opened new branches in Karnataka and Kerala. Utkarsh SFB began its operations in January 2017, pursuant to the small finance banking licence from RBI in November 2016.

The lender mainly caters to the banking and financial services, with focus on microfinance, to the underserved and unserved in rural and semi-urban areas in the country.

It also offers microfinance loans based on the Joint Liability Group (JLG) model to individuals, retail asset loans including micro, small and medium enterprise (MSME) loans, housing, personal, commercial vehicle, construction equipment loans and wholesale lending.

The SFB also offers digital services such as internet and mobile banking, digi on0boarding as well as ATMs and micro ATMs service.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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