Utkarsh Small Fin Bank stock down 3.5% on muted Q1 loan growth sequentially

Utkarsh Small Finance Bank Q1FY25 business update: Utkarsh Small Finance bank reported a 2.7 per cent Q-o-Q rise in gross loan portfolio

Utkarsh Small Finance Bank Q1 business update: Utkarsh Small Finance Bank (Utkarsh SFB) share price fell 3.5 per cent to Rs 51.08 per share on the BSE in Friday's intraday trade. At 1:35 PM, Utkarsh SFB stock was down 3 per cent as against 0.35 per cent dip in the benchmark BSE Sensex.

The fall in Utkarsh SFB's share price comes amid muted loan growth in the June quarter of the ongoing financial year (Q1-FY25) on a quarter-on-quarter (Q-o-Q) basis. In an exchange filing, Utkarsh Small Finance bank reported a 2.7 per cent Q-o-Q rise in gross loan portfolio for the recently concluded quarter at Rs 18,798 crore.

 

By comparison, the loan portfolio was at Rs 18,299 crore at the end of the March quarter.

On a year-on-year basis, however, Utkarsh SFB's Q1 loan book grew 30.6 per cent.

On the deposit front, total deposits were up 3.9 per cent Q-o-Q and 30 per cent Y-o-Y at Rs 18,163 crore.

Within this, current and savings account (CASA) deposit were Rs 3,453 crore (down 3.6 per cent Q-o-Q/up 27 per cent Y-o-Y), retail term deposits were Rs 8,729 crore (up 9.5 per cent Q-o-Q/47.7 per cent Y-o-Y). Bulk term deposits, meanwhile, were Rs 5,980 crore. These grew just 1 per cent over the March quarter of FY24, and 12 per cent over Q1-FY24.

"As per change in regulatory norms, the bulk deposits threshold considered during Q1-FY25 is Rs 3 crore versus Rs 2 crore for the earlier period. If we consider the retail term deposit (RTD) threshold of less than Rs 2 crore for June 2024 quarter, then RTD would have been Rs 8,595 crore, up 45 per cent Y-o-Y," Utkarsh SJB said.

Meanwhile, Utkarsh Small Finance Bank's collection efficiency (excluding pre-payments) for the Micro Banking loan portfolio stood at 96.2 per cent for Q1-FY25. Provisional Liquidity Coverage Ratio (LCR) stood at 179 per cent as on June 30, 2024, the bank said.

Utkarsh Small Finance Bank is engaged in providing banking and financial services with a focus on providing microfinance to the underserved and unserved sections of the country.

Utkarsh SFB's lending activities are primarily focused in rural and semi-urban locations of the country while its other services are spread across the country.