Utkarsh Small Finance Bank (UTKARSHBNK) Q4 21/22 earnings summary

Executive summary

• FY22 growth continued despite COVID-19 disruption: total income rose 19.22% YoY to ₹2,033.65 crore and pre-provision operating profit rose 21.55% to ₹509.34 crore.

• Deposits grew 34.19% to ₹10,074.18 crore and gross loans grew 26.32% to ₹10,630.72 crore; higher credit provisions pulled PAT down 45.03% to ₹61.46 crore.

Financial highlights

• Net interest income increased 26.40% YoY to ₹1,060.85 crore; non-interest income rose 48.05% to ₹184.83 crore.

• Operating expenses grew 35.10% to ₹736.35 crore; provisions reached ₹429.63 crore versus ₹267.60 crore, including a ₹65 crore contingency buffer.

• Total assets grew 24.11% to ₹15,063.77 crore; net advances rose 24.48% to ₹10,228.15 crore.

Outlook and guidance

• FY23 expected to be near-normal, with profitability and growth projected to improve as COVID effects recede; residual borrower stress may persist.

• Priorities include expanding assets and liabilities, diversifying retail lending, growing CASA and retail deposits, entering new geographies, and deepening digital services.

• Plans include expanding the deposit franchise in the top 100 cities and using data analytics to tailor customer offerings.