Utkarsh Small Finance Bank Q4 Results: Profit rises 37% to ₹160 crore, dividend announced
Upstox
3 min read • Updated: April 26, 2024, 5:50 PM
Summary
Utkarsh Small Finance Bank's gross loan portfolio grew by 31.1% YoY to ₹18,299 crore. Gross non-performing assets declined to 2.51% as of March 31, 2024, from 3.04% as of December 31, 2023, the company said in a regulatory filing.
Utkarsh Small Finance Bank’s net profit rose 37% to ₹160 crore in the fourth quarter of financial year 2023-24 (Q4 FY24). In the year-ago period, the lender had reported a net profit of ₹116 crore.
The company reported the highest annual operating profit of ₹997 crore and profit after tax (PAT) of ₹497.6 crore in FY24 from ₹404 crore in FY23, reflecting a year-on-year (YoY) growth of 23%.
The bank's Board also announced a dividend of ₹0.50 per share for the year ended March 31, 2024, subject to the approval of the shareholders at the ensuing annual general meeting.
Utkarsh Small Finance Bank financial results: Key highlights
- Gross Loan portfolio grew by 31.1% YoY to ₹18,299 crore
- Deposits grew by 27.4% YoY to ₹17,473 crore, led by Retail Term Deposits (RTD) growth of 43% YoY
- Gross NPAs declined to 2.51% as of March 31, 2024, from 3.04% as of December 31, 2023
- Highest ever annual operating profit of ₹997 crore and profit after tax of ₹498 crore in FY24, a YoY growth of 23%
- Q4 FY24, net profit at 160 crore, a 37% Y0Y increase.
The personal credit institutions company's gross loan portfolio grew by 31.1% YoY to ₹18,299 crore. Gross non-performing assets declined to 2.51% as of March 31, 2024, from 3.04% as of December 31, 2023, the company said in a regulatory filing.
The lender's loan portfolio increased by 31.1% YoY to ₹18,299 crore in FY24. "The Bank continues to see healthy growth in the micro-banking loan portfolio as well as the build-up of secured loans, i.e. MSME (YoY growth 67%), Housing (YoY growth 30%) and commercial vehicle and construction equipment (YoY growth 69%) and as a result we have witnessed a diversity of loan portfolio improving," it said.
The return on assets (RoA) and return on equity (RoE) stood at 2.9% and 22.3%, respectively, for Q4 FY24 and 2.4% and 19.5% for FY24.
Speaking on the results, Govind Singh, MD and CEO of Utkarsh Small Finance Bank, said, "Our gross loan portfolio and deposits growth were strong FY24, in line with our expectation, on the strength of our deep-rooted franchise & footprints and relevant product offerings. We continue to see good growth opportunities across our key products, i.e. micro-banking, MSME, Housing and commercial vehicle and construction equipment loan portfolio".
Shares of the private lender closed 0.7% higher at ₹59.40 on the NSE on Friday.