Utkarsh Small Finance Bank (UTKARSHBNK) Q4 18/19 earnings summary

Executive summary

• FY2018-19 ended with net profit of ₹93.9 crore versus a ₹63.0 crore loss in FY2017-18; prior-year loss reflected microfinance write-offs after collection disruption post-demonetization.

• Deposits rose 72.8% to ₹3,791.4 crore and gross advances grew 48% to ₹4,740 crore, alongside expansion to 436 outlets across 11 states.

• Growth priorities include a stronger retail deposit base, broader retail lending, geographic expansion, technology-led service and a public listing as required by RBI licensing guidelines.

Financial highlights

• Net interest income was ₹497.4 crore; operating profit ₹230.5 crore; PBT ₹148.8 crore; and PAT ₹93.9 crore for FY2018-19.

• Total income reached ₹939.1 crore versus ₹561.9 crore in FY2017-18; net interest income increased from ₹267.4 crore to ₹497.4 crore.

• Deposits were ₹3,791.4 crore, investments ₹862.2 crore and net advances ₹4,665.7 crore at March 31, 2019.

• EPS was ₹1.37 versus a loss per share of ₹1.73 in FY2017-18.

• Cost of funds declined to 9.30% from 9.99% in the prior financial year.

Outlook and guidance

• FY2019-20 priorities: grow CASA and retail term deposits, expand retail asset products and existing products into new geographies, and source business through new channels.

• Plans include introducing business loans for existing microfinance customers with a good repayment record and starting Micro Banking operations in Odisha.

• General Banking footprint was planned to expand from 11 states to 17, including Assam, Chandigarh, Gujarat, Odisha, Rajasthan and Telangana.

• Public listing, mandated by RBI licensing guidelines, was identified as a key focus to support future capital needs and broaden ownership.