Utkarsh Small Finance Bank started off as a micro finance Institution (NBFC-MFI) & gradually transformed into to a small finance bank. The bank’s lending activities are primarily focussed in rural and semi-urban locations of the country while its deposit mobilisations and other services are spread across the country. As a small finance bank, it has an agenda to primarily focus on a micro banking products for specific sets of people & region. It has diversified and come up with customization of its product as per the regulatory norms to offer best products to its customers in retail loans, unsecured loans, business loans, personal loans, housing loan and secured loans such as loans against property, wholesale lending that includes short term and long-term loan facilities to small and medium enterprises (SMEs), mid and large corporate and institutional clients and gold loans. The Bank is headquartered at Varanasi, Uttar Pradesh & there are close to 830 operational branches spread across 22 States and 4 Union Territories till date.
Micro banking business is spread across multiple districts covering 12 states and provides a comprehensive package of financial inclusion products and business development services to the lower income group of people who have been alienated to financial services.
The bank provides an access to certain sets of individuals who are investing on an asset in a form factory, house or car under Micro Small & Medium Enterprises (MSME), Housing Loan, Wheels.
USFBL provides an assistance with wholesale banking feature & offers both funds based (Working Capital Loan & Term Loan) & non-fund-based limits in the form of bank guarantee to the customers under this vertical.
This is done in a partnership by building up a network to meet the end of business interest either by establishing their own branches or partnership approach.
|Gross Loan Portfolio||13,957.11||10,630.72||8,415.66||6,659.99||4,741.55|
|Profit Before Tax||535.81||79.71||151.44||250.42||148.81|
|Profit After Tax||404.5||61.4||111.82||186.74||93.89|
|Earnings Per Share||4.51||0.7||1.46||2.49||1.37|
|Capital Adequacy Ratio||20.64||21.59||21.88||22.19||24.14|
|Return on Avg. Total Asset||2.42%||0.48%||1.05%||2.51%||1.83%|
The bank is capitalizing on their retail banking services, products & solutions for further expansion. It is systematically working to develop and offer a comprehensive portfolio of assets that will drag the attention of new customers and retain the current ones. At the same time, it is adopting new tech platforms & offering digital solution to provide memorable services and solutions. It is also implying regional tactics to expand their diaspora & financial inclusivity. The Bank intends to increase the share of secured lending in overall portfolio in the years to come.
Like any other bank, Utkarsh Small Finance Bank is also surrounded by the risks involved in running the bank. It monitors short term as well as long term risk which consists of credit risk (default done by their borrowers), market risk which arises due to change in monetary & fiscal policies apart from internal & external dictation on the economy of the country, liquidity risk (investment done by the banks), dependencies on few industries to generate revenue etc.
The Bank has been assigned the highest-grade credit rating for the short term at A1+ by ICRA. Also, The Bank’s long-term subordinated bonds are rated at A (Stable) rating by the rating agencies i.e., ICRA and CARE Ratings.
These are the following insurance partners of the bank: - Aditya Birla Health Insurance Company, Bharti AXA Life Insurance Company, Future Generali India Insurance Company, HDFC ERGO General Insurance Company, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, Kotak Mahindra General Insurance Company.
British International Investment PLC (13.94%), RBL Bank Limited (9.86%), NMI Frontier Fund KS (7.82%), Faering Capital India Evolving Fund II (7.78%), Hero Enterprise Partner Ventures (4.92%), Shriram Life Insurance Company Limited (4.9%), ICICI Prudential Life Insurance Company Ltd (4.22%), Aavishkaar Goodwell India Microfinance Development Company II Limited (4.07%) etc.
Praveen Kumar Gupta – Chairman
Mr. Govind Singh – Managing Director & CEO
Mr. Sarjukumar Pravin Simaria – Chief Financial Officer
Mr. Alok Pathak – Chief Risk Officer