Utkarsh Small Finance Bank (UTKARSHBNK) Q4 20/21 earnings summary

Executive summary

• FY21 total income rose 22.68% YoY to ₹1,725.14 crore; operating profit increased 25.13% to ₹438.34 crore, while PAT fell 40.12% to ₹111.82 crore after higher provisions.

• Gross loan portfolio grew 26.36% to ₹8,415.66 crore and deposits rose 43.41% to ₹7,507.57 crore, despite COVID-19 disruption.

• Collections recovered from 3.34% in April 2020 to 97.55% in March 2021; gross NPA rose to 3.75% from 0.71% YoY.

Financial highlights

• Net interest income increased 15.25% YoY to ₹839.25 crore; non-interest income rose 46.26% to ₹144.15 crore.

• Provisions were ₹286.90 crore versus ₹99.88 crore in FY20; PAT was ₹111.82 crore versus ₹186.74 crore.

• Operating expenses rose 14.39% to ₹545.06 crore; reported operating profit before provisions was ₹438.34 crore, up 25.13% YoY.

• EPS was ₹1.46 versus ₹2.49; no FY21 dividend payout was planned to conserve capital amid second-wave uncertainty.

Outlook and guidance

• Priorities include diversifying retail assets, growing CASA and retail term deposits, increasing fee income through cross-selling, and expanding digital delivery and analytics.

• Plans include deeper presence in current markets, expansion into western and southern states, and targeting the top 100 deposit cities, including urban and metro markets.

• FY21-22 growth momentum was expected to be delayed by the second COVID-19 wave, with recovery anticipated later in the year.