Utkarsh Small Finance Bank announced Q2FY25 & H1FY25 results Gross Loan portfolio grew by 28.3% YoY to Rs 19,101 crore. Deposits grew by 39.6% YoY to Rs 19,496 crore, led by Retail Term Deposits (RTD) growth of 47.6% YoY1 Gross NPAs & Net NPAs were 3.88% and 0.89%, respectively, as on Sep 30, 2024 Operating profit (pre-provisions) of Rs 588 crore in H1FY25 (YoY growth 28%) and Rs 276 crore in Q2FY25 (YoY growth 16%). Profit after tax Rs 189 crore in H1FY25 and Rs 51 crore in Q2FY25. Return on Assets and Return on Equity stood at 1.5% and 12.3% respectively during H1FY25 and 0.8% and 6.6% respectively during Q2FY25. Speaking on the results, Govind Singh, MD & CEO of the bank, said, “Q2, FY25 has been a challenging quarter for microfinance sector wherein collection efficiency and disbursements, both, were significantly impacted on account stress which started from heatwave & operating limitations during general elections in Q1, FY25 to higher borrower level leverage and credit supply tightening for underlying micro-banking borrowers on account implementation of MFIN guard rail norms and general slowdown in disbursement by the micro finance sector. We continue to work on strengthening our collection efforts further to improve collection efficiency. On the positive side, we continue to witness healthy growth in non-microbanking loan portfolio and consistent increase in share of secured loan portfolio. We have also been able to optimize our disbursements yields in secured lending by 50-80 bps for housing and MSME portfolio. Our deposits have also grown by a healthy pace of 40% YoY, deposits growth was led by retail term deposits growth. We are expanding our franchise, and opened 79 new branches during H1FY25 and 51 in Q2FY25, and have a total branch network of 967 branches, spread across 26 states & UTs of the country, as on September 30, 2024”. Result PDF