April 7, 2025
Utkarsh Small Finance Bank has released its business performance snapshot for the quarter and full year ending March 31, 2025. The update highlights a year of robust growth in deposits and a significant portfolio transformation as the bank continues refining its lending strategy.
🔍 Key Highlights (YoY & QoQ Changes)
📌 Loan Portfolio Trends
- Gross Loan Portfolio rose to ₹19,666 crore, a 7.5% increase YoY and 3.2% QoQ, indicating steady lending activity.
- The bank is pivoting from Joint Liability Group (JLG) loans, which declined by 17% YoY to ₹9,207 crore, and 5.4% down QoQ.
- On the flip side, non-JLG loans (like secured MSME, housing, and retail loans) saw a major spike — up 45.1% YoY and 12.2% QoQ, reaching ₹10,459 crore. This shift underscores a strategic focus on more diversified and potentially lower-risk lending.
💰 Deposit Mobilization
- Total deposits surged to ₹21,566 crore — a strong 23.4% YoY and 6.9% QoQ increase.
- CASA (Current Account Savings Account) deposits jumped 31% YoY, improving the bank’s low-cost deposit base.
- Retail Term Deposits grew by 33.5%, showing sustained trust from individual depositors.
- Even Bulk Term Deposits inched up modestly by 5.3%.
- The CASA ratio improved to 21.8% (vs. 20.5% last year), while the combined CASA + Retail Term Deposit ratio climbed to 71.1%, reflecting a more stable and granular deposit base.
💼 Operational Efficiency & Liquidity
- The bank maintained an impressive collection efficiency of 99.1% in its Micro Banking (JLG) segment for the quarter.
- Liquidity remains strong with a Liquidity Coverage Ratio (LCR) of 193%, well above regulatory requirements, showcasing a highly liquid and resilient balance sheet.
🚀 What This Means
Utkarsh Small Finance Bank’s latest update indicates a maturing financial institution gradually reducing its dependency on group lending and embracing a broader retail and secured loan base. The continued deposit growth — especially in CASA and retail term segments — paired with strong collection efficiency and liquidity position the bank for sustainable growth.
Disclaimer: This list is for educational purposes only and should not be considered investment advice. Please conduct your own research before making any financial decisions.
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