Utkarsh Small Finance Bank Q1 Results: Profit jumps 20% YoY to Rs 107 crore on lower provisions

economictimes.indiatimes.com:

Utkarsh Small Finance Bank, which got listed on the bourses last month, reported a 20% year-on-year rise in net profit for the June quarter at Rs 107 crore, on account of higher income and lower provisions. Net profit was Rs 89 crore in the year-ago period. Its net interest margin for the quarter was however lower at 9.2% as compared with 9.7% earlier.

Net interest income was 21% higher at Rs 422 crore. The bank expects that yield on advances would improve in the next few quarters with re-pricing of interest rates in microfinance, which is its lending segment. Operating profit was marginally higher at Rs 221 crore against Rs 213 crore.

Provisions and contingencies were lower at Rs 77 crore against Rs 91 crore. Its loan portfolio grew by 31.4% year-on-year to Rs 14,394 crore at the end of June with microfinance portfolio accounting for 63% of it. Deposits of the bank grew 36% year-on-year to Rs 13,967 crore.

Its gross non-performing assets ratio stood at 3.13% at the end of June against 3.23% three months prior to that. Gross NPA was 5.73% a year back. Utkasrh was listed on the BSE on July 21 at Rs 39.95, which was 60% premium over the issue price of Rs 25 per share.