Utkarsh Small Finance Bank Q2 Updates: Total Deposits Rises 39.6%

Utkarsh Small Finance Bank Ltd.'s total deposits rose 39.6% on a yearly basis to Rs 19,496 crore in the July-September quarter, according to provisional figures released by the bank.

Gross loan portfolio rose 28.3% on a yearly basis to Rs 19,101 crore in the July-September quarter compared to Rs 18,798 crore last year, according to provisional quarterly business updates filed with stock exchanges on Saturday.

The CASA ratio—the proportion of deposits that come from low-cost current and savings accounts—rose to 19.6% from 19% in the year ago period. A higher CASA ratio indicates a lower cost of funds, since lenders do not usually give any interest on current account deposits and the interest on saving accounts is low.

Retail term deposits included stood at Rs 9,518 crore, up 47.6% from Rs 8,729 crore reported in the same quarter previous year. The bulk deposits also rose 30.2% year-on-year to Rs 6,159 crore.

The liquidity coverage ratio as of June 30, 2024, was at 180%.

Earlier in Sept., Utkarsh Small Finance Bank's the board approved the merger with its parent company, which aims to simplify operations, enhance shareholder value, and create a stronger entity.

"The merger of Utkarsh Small Finance Bank with parent Utkarsh CoreInvest Ltd. is set to get completed within the next 12-13 months," Chief Executive Officer and Managing Director Govind Singh told NDTV Profit.

In the first quarter ended June 2024, the lender posted a 28% increase in its profit at Rs 137 crore. The bank had earned a net profit of Rs 107 crore in the same quarter a year ago.

Total income increased to Rs 1,071 crore during the quarter under review against Rs 812 crore in the same period last year, the bank said in a regulatory filing.

The interest income of the bank rose to Rs 966 crore as against Rs 720 crore in the first quarter of previous year.

Shares of Utkarsh Small Finance Bank closed 0.17% lower at Rs 45.98, compared to a 0.83% decline in the benchmark Nifty 50 on Friday.