Utkarsh Small Finance Bank Reports 24% Increase in Q3 Profits, Reaches ₹116 Crore

In the third quarter of December 2023, Utkarsh Small Finance Bank reported a noteworthy 24% increase in profits, amounting to ₹116 crore. This marks a significant improvement from the previous year’s net profit of ₹93.5 crore during the same quarter. According to a regulatory filing, the bank’s total income also experienced a substantial surge to ₹889 crore, up from ₹712 crore in the corresponding period of the previous year.

The bank’s interest income grew to ₹806 crore, compared to ₹641 crore in the October-December period of the previous financial year. As for asset quality, the bank’s gross Non-Performing Assets (NPAs) decreased to 3.04% of gross loans by the end of December 2023, down from 3.58% a year earlier. Correspondingly, net NPAs or bad loans also witnessed a decline, dropping to 0.19% from 0.72% at the end of the third quarter in FY22.

The impressive financial performance of Utkarsh Small Finance Bank in the third quarter reflects its sustained growth and stability in the market, demonstrating its capability to efficiently manage assets and produce sustainable profits. It is noteworthy that the bank has not only maintained its asset quality, but has also achieved substantial growth in interest income and total income. This is indicative of the bank’s commitment to prudent loan management and overall financial stability.

The surge in profits and the decrease in NPAs signify the bank’s strong performance and its emphasis on preserving healthy asset quality. This reinforces the bank’s standing in the financial sector, reaffirming its reputation as a trustworthy and stable institution in the market. These positive financial results serve as evidence of Utkarsh Small Finance Bank’s sound business practices and effective risk management strategies, further solidifying its position as a key player in the banking industry.