Utkarsh Small Finance Bank Ltd shares dropped more than 9% after the bank reported a significant net loss of ₹168 crore for Q3 FY25, compared to a net profit of ₹116 crore in the same quarter of FY24. As of 10:45 AM, the shares were trading 9.11% lower at Rs 25.55.
For the quarter ending December 31, 2024, the bank’s net interest income (NII) saw a slight dip of 0.5%, coming in at ₹480 crore, down from ₹482 crore in Q3 FY24. Non-performing assets (NPA) also rose, with gross NPA increasing to 6.17% from 3.88% in the previous quarter, and net NPA standing at 2.5% compared to 0.89% in Q2 FY25.
Despite the financial setback, the bank’s loan portfolio grew by 16.2% YoY, reaching ₹19,057 crore. Retail term deposits saw a robust growth of 40.6%, boosting total deposits by 33.5% YoY to ₹20,172 crore. Additionally, the bank’s credit-deposit ratio improved to 91.9%, up from 99.2% last year.
The pre-provision operating profit (PPoP) grew 8.1% YoY to ₹773 crore for the first nine months of FY25, but profit after tax plummeted to ₹21 crore from ₹338 crore last year.
With a capital adequacy ratio (CRAR) of 21.10% and a Tier 1 capital ratio of 17.94%, the bank maintains a strong capital position. The bank now operates across 26 states and union territories with over 1,000 branches.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
