Utkarsh Small Finance Bank IPO to open on July 12. Check details

economictimes.indiatimes.com:

IPO is a completely fresh issue of shares worth Rs 500 crore and the entire proceeds will go to the lender. Incorporated in 2016, Utkarsh SFB commenced operations in 2017 and its product suite includes a range of deposit products, including saving accounts, salary accounts, current accounts, recurring and fixed deposits and locker facilities The bank recorded the third fastest gross loan portfolio growth between fiscal 2019 and 2023 among its peers with a loan portfolio of more than Rs 6,000 crore.

It also had the second highest provision coverage ratio among SFBs in fiscal 2023. Its operations are focused in rural and semi-urban areas and as of March 2023, it had 3.59 million customers majorly located in rural and semi urban areas.

Unlike NBFCs, which expand horizontally with a special focus product, such as vehicle loan, microfinance loans or housing finance, SFBs can expand vertically and horizontally offering multiple loan products as well as deposit products. The lender had earlier contemplated a pre-IPO placement of Rs 100 crore but didn't execute any.

Proceeds from the fresh issue will be utilised to augment the lender's Tier 1 capital base to meet future capital requirements. For the year ending March, the company had recorded total income of 2,804 crore, while net profit for the same period stood at Rs 404 crore.