Utkarsh Small Finance Bank's Q4 Profit Surges by 19% to Rs 160 Crore

Utkarsh Small Finance Bank reports a 19% increase in net profit to Rs 160 crore in Q4 FY24, driven by a rise in income and improved asset quality. Total income increased by 33% to Rs 1,016 crore. Gross and net NPAs declined to 2.51% and 0.03%, respectively. The bank declared a final dividend of Rs 0.50 per share, and its capital adequacy ratio improved to 22.57%.

Utkarsh Small Finance Bank on Friday posted a 19 per cent rise in its net profit to Rs 160 crore for the fourth quarter ended March 2024.

The bank had earned a net profit of Rs 134 crore in the same quarter a year ago.

Its total income rose to Rs 1,016 crore during the quarter under review against Rs 760 crore in the year-ago period, the bank said in a regulatory filing.

The bank’s interest income grew to Rs 896 crore from Rs 691 crore in the fourth quarter of the previous financial year.

On the asset quality front, the bank's gross non-performing assets (NPAs) declined to 2.51 per cent of the gross loans at the March end of 2024 from 3.23 per cent a year ago.

Similarly, net NPAs or bad loans came down to 0.03 per cent from 0.39 per cent at the end of the fourth quarter in FY23.

The bank declared a final dividend of Rs 0.50 per equity share of Rs 10 each, subject to shareholders' approval at the ensuing annual general meeting.

The capital adequacy ratio of the bank rose to 22.57 per cent from 20.64 per cent at the end of FY23.