Net interest income (NII) rose by 21% to Rs 422 crore in the first quarter from Rs 349 crore recorded in the same period last year. The bank's net interest margin (NIMs) remains in healthy range of 9–10% which stood at 9.2% in Q1 FY24 as against 9.7% in Q1 FY23.

Re-pricing of interest rates in bank's key lending segment (microfinance), which reflect with a lag-on-account fixed rate of interest, will have a positive impact on bank's yield on advances over next few quarters.

Operating profit rose by 4% to Rs 221 crore in Q1 FY24 from Rs 213 crore in Q1 FY23.

Total provisions for the period under review amounted to Rs 77 crore (down 16% YoY). The bank continues to build floating provision which stood at Rs 106 crore as on 30 June 2023 as compared with Rs 93 crore as on 31 March 2023.

Profit before tax in Q1 FY24 stood at Rs 145 crore, up by 18% from Rs 122 crore in Q1 FY23.

Gross NPAs amounted to Rs 431 crore as on 30 June 2023 as against Rs 628 crore as on 30 June 2022 and Rs 432 crore as on 31 March 2023.

Gross NPA ratio was 3.1% as on 30 June 2023 as against 5.7% as on 30 June 2022 and 3.2% as on 31 March 2023.

Net NPA ratio was 0.3% as on 30 June 2023 as against 1.7% as on 30 June 2022 and 0.4% as on 31 March 2023.

The bank's return on assets and return on equity stood at 2.3% and 21.1%, respectively, during Q1 FY24.

Bank's loan portfolio grew by 31.4% YoY to Rs 14,394 crore as on 30 June 2023. The bank's microfinance portfolio accounted for 63% of total loan portfolio and non-microfinance portfolio accounted for 37% of loan book.

Deposits of the bank grew by 35.6% YoY to Rs 13,967 crore as on 30 June 2023. The bank continued to expand its general banking franchise which stood at 257 banking outlets as on 30 June 2023, out of these 44% are branches opened in last two years.

Bank's capital adequacy was 19.8% as on 30 June 2023. The bank has raised equity capital of Rs 500 crore through IPO in July 2023. Adjusted for capital raised through IPO & Q1, FY24 profit, bank's CRAR was more than 25%, providing adequate capital to support growth plan.

Govind Singh, MD and CEO, Utkarsh Small Finance Bank said, "We are witnessing a healthy scaling up of our franchise towards microfinance & others retail loans i.e. MSME, housing and wheels segment as well as deposits build-up.

Our endeavor is to be consistent in performance which leads us to focus on productivity and yield with granularity attached to it is the “Business-as-Usual” model for us.”

Utkarsh Small Finance Bank is engaged in providing banking and financial services with a focus on providing financial services to the underserved and unserved sections. The Bank's microfinance lending activities are primarily focused in rural and semi-urban locations of the country while its other services are spread across the country.

The scrip fell 2.07% to currently trade at Rs 50.50 on the BSE.