What was Utkarsh Small Finance Bank's net loss in Q3?

Utkarsh Small Finance Bank reported a net loss of ₹375 crore in the third quarter.

How did Utkarsh SFB's asset quality perform in Q3?

Asset quality improved sequentially, with gross non-performing assets declining to 11.05% and net NPAs easing to 4.48%.

What is Utkarsh SFB's new lending strategy focus?

The bank is shifting its focus towards collections, portfolio clean-up, and secured lending products such as MSME, housing, and gold loans.

Home / Business and Economy / Utkarsh SFB Posts Wider Q3 Loss Amid Lower Net Income

Utkarsh SFB Posts Wider Q3 Loss Amid Lower Net Income

2 Feb

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Summary

Net loss widened to ₹375 crore from ₹168 crore year-on-year.
Net interest income declined 27.5% to ₹348 crore.
Gross NPAs reduced to 11.05% and net NPAs to 4.48%.

Utkarsh SFB Posts Wider Q3 Loss Amid Lower Net Income

Utkarsh Small Finance Bank's third-quarter results revealed a net loss of ₹375 crore, a considerable rise from the ₹168 crore loss reported in the same period last year. This widened loss was accompanied by a substantial 27.5% decrease in net interest income, which fell to ₹348 crore from ₹480 crore year-on-year, indicative of slower disbursement and pressure on earnings.

However, the bank demonstrated sequential improvement in asset quality. Gross non-performing assets (NPAs) declined to 11.05% from 12.42% in the previous quarter, and net NPAs eased to 4.48% from 5.02%. This suggests enhanced collection efficiency and greater stability within the loan portfolio.

The bank's management strategically slowed disbursements to focus on collections and portfolio clean-up, consequently impacting the overall loan book. During the quarter, customer engagement efforts led to savings accounts being opened for over 75% of its micro-banking customers.