Utkarsh Small Finance Bank Reports 24% Rise in Q3 Profit Amid Strong Financial Performance

Introduction:

Utkarsh Small Finance Bank Ltd (NS:UTKR) has announced a significant 24% increase in profit for the third quarter of December 2023, reaching INR 116 crore compared to INR 93.5 crore in the same period last year. The bank's robust financial performance is underscored by a notable rise in total income and improvements in asset quality.

Key Financial Highlights:

1. Profit Surge: Utkarsh Small Finance Bank witnessed a 24% rise in profit, reaching INR 116 crore in Q3FY24 compared to INR 93.5 crore in the corresponding period of the previous year.
2. Total Income Growth: The bank's total income saw a substantial increase, reaching INR 889 crore in the current quarter, up from INR 712 crore in the same quarter of the previous year.
3. Interest Income Growth: A significant contributor to the positive performance was the growth in interest income, which rose to INR 806 crore from INR 641 crore in the October-December 2024 period of the previous financial year.

Asset Quality Improvement:

1. Gross Non-Performing Assets (NPAs): Utkarsh Small Finance Bank demonstrated improvements in asset quality, with gross NPAs decreasing to 3.04% of gross loans by December 2023, down from 3.58% a year ago.
2. Net NPAs: Similarly, net NPAs or bad loans declined to 0.19% from 0.72% at the end of the third quarter in FY22.

Conclusion:

Utkarsh Small Finance Bank's strong financial performance in the third quarter of December 2023, marked by a significant rise in profit, total income growth, and improvements in asset quality, reflects its resilience and prudent management strategies. The bank's efforts to sustain profitability while managing asset quality bode well for its future prospects.