Utkarsh Small Finance Bank (UTKARSHBNK) Q4 17/18 earnings summary

Executive summary

• FY2018 was the first full year of banking operations; scheduled commercial bank status was received, with 405 outlets across 125 districts in 11 states.

• Net loss reflected demonetization-related portfolio write-offs and provisions; Q4 FY2018 returned to pre-tax profit of ₹18.3 crore.

Financial highlights

• Deposits closed at ₹2,193.9 crore versus ₹18.7 crore in March 2017; net advances were ₹3,082.5 crore, up 93% YoY.

• Net interest income was ₹268.3 crore, operating profit ₹75.6 crore and PAT a loss of ₹63.0 crore; write-offs were ₹142.6 crore, mainly demonetization-related.

• Operating income reached ₹311.1 crore; interest earned was ₹519.0 crore and other income ₹42.8 crore for FY2018.

Outlook and guidance

• FY2019 plans targeted business of over ₹11,000 crore, 101 General Banking Outlets and 396 Micro Banking Outlets, spanning 170 districts in 17 states.

• Growth priorities included converting all Micro Finance Outlets to Micro Banking Outlets, entering Odisha, expanding retail assets and broadening products and deposit mobilization.

• Retail asset plans included expanded MSME and housing distribution, new working-capital products, scorecard-based appraisal, and Loan Origination and Collections systems.