Utkarsh Small Finance Bank (UTKARSHBNK) Q4 23/24 earnings summary

Executive summary

• FY24 delivered record PPOP of ₹997.27 crore and PAT of ₹497.63 crore, with 31.11% loan-book growth and improved asset quality.

• The franchise ended FY24 with ₹18,299 crore gross loans, ₹17,473 crore deposits and 888 banking outlets across 26 states and UTs.

• Growth priorities include diversifying lending, expanding retail deposits, increasing cross-sell and fee income, and investing in digital capabilities.

Financial highlights

• NII rose 23.33% YoY to ₹1,885.80 crore; other income increased 33.78% to ₹400.40 crore, supported by fees, PSLC sales, cross-sell and recoveries.

• PPOP grew 18.96% YoY to ₹997.27 crore; PAT rose 23.02% to ₹497.63 crore, including credit cost of 2.20% and ~1.8% excluding the additional floating provision.

• Operating expenses increased 30.19% amid expansion, including more than 200 branches opened across FY23 and FY24; cost-to-income ratio was 56.38% versus 54.15%.

• Total assets grew 25% to ₹23,902.68 crore; net advances rose 25.22% to ₹16,364.81 crore.

Outlook and guidance

• FY25 is expected to bring healthy business growth and profitability, while elevated interest rates and tighter liquidity may challenge performance.

• Growth plans emphasize the top 100 deposit locations, more CASA and retail term deposits, asset diversification, fee income and technology-led underwriting and collections.

• Rising credit demand, disposable incomes and business activity in rural and semi-urban markets were identified as growth opportunities.