Utkarsh Small Finance Bank Limited has informed the Exchange regarding a press release dated May 03, 2025, titled "Press Release on Financial Results".
UTKARSHBNK · price
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Awaiting price reaction for this filing.
Utkarsh Small Finance Bank reported its Q4 and FY25 results on May 3, 2025. Deposits grew strongly by 23.4% YoY to ₹21,566 crore, led by retail term deposits (up 33.5% YoY), and the bank now operates 1,092 branches across 27 states. However, the gross loan portfolio grew only 7.5% YoY to ₹19,666 crore, weighed down by a decline in the JLG (microfinance) portfolio due to RBI guard rail norms. Profit after tax collapsed to just ₹24 crore in FY25 from ₹498 crore in FY24, as gross NPAs surged to 9.43% (from 6.17% in Dec 24 and 2.51% in Mar 24) and net NPAs rose to 4.84%. The bank fully utilized its floating asset provision, adjusting provisions by ₹148.62 crore for the year and ₹189.96 crore in Q4, which materially hurt earnings. Capital remains comfortable with CRAR at 20.93% and Tier 1 at 17.88%.
Sharp jump in NPAs and the full utilization of floating provisions have led to a dramatic drop in profits, which is a negative for near-term sentiment. However, strong deposit growth, improving share of secured loans (43% vs 34%), and healthy capital ratios provide some comfort on long-term stability.