The origin storyUtkarsh CoreInvest Limited started out as an NBFC in 2010, focusing on providing microfinance to unserved and underserved segments and in particular in the states of Uttar Pradesh and Bihar.
It incorporated Utkarsh Small Finance Bank Limited (Utkarsh SFB) as a wholly-owned subsidiary in 2016 and transferred its microfinance business to Utkarsh SFB which commenced its operations from January 2017.
Headquartered in Varanasi, Uttar Pradesh it now operates across India with a presence in 26 States and Union Territories with 830 Banking Outlets and 15,424 employees, as of March 31, 2023.
The businessUtkarsh SFB mainly focuses on microfinance and has been diversifying their business product portfolio to include non-micro banking loans to reduce dependence on their microfinance business and grow their secured loan portfolio.
Geographical spread of the businessThey focus on rural and semi-urban areas and as of March 31, 2023, had 3.59 million customers (both deposit and credit) majorly located in rural and semi-urban areas primarily in Bihar and Uttar Pradesh that, in Fiscal 2022, are among the states with the best asset quality but with low and moderate credit penetration. These states constituted 30.88% and 25.98% of their total Gross Loan Portfolio respectively.
They are now looking to strengthen their presence in other states and have started working on some partnerships for the same.
Comparison of Utkarsh SFB with its peers
- It has the third fastest Gross Loan Portfolio growth between Fiscal 2019 and Fiscal 2023 among SFBs with a Gross Loan Portfolio of more than ₹ 60 billion.
- It reported third highest CAGR in terms of deposits between Fiscal 2019 and Fiscal 2023
- It has the best cost-to-income ratio amongst compared SFBs in as of Fiscal 2023
- It reported second highest RoE and second highest RoA among the compared SFBs as of Fiscal 2023
- It has the second lowest NNPA among compared SFBs as of Fiscal 2023
Objects of the issue:Utkarsh SFB will utilize the Net Proceeds from the Issue towards augmenting its Tier-1 capital base to meet its future capital requirements. A part of the proceeds will also be used towards meeting the expenses in relation to the Issue.
Financial Snapshot (₹ crores)
|Period Ended||Total Assets||Total revenue||PAT||Net worth||Reserves and surplus|
|March 31, 2020||9,404.32||1,406.18||186.74||1,019.50||260.23|
|March 31, 2021||12,137.91||1,705.84||111.82||1,368.35||520.02|
|March 31, 2022||15,063.77||2,033.65||61.46||1,572.30||676.78|
|March 31, 2023||19, 117.54||2,804.29||404.50||2,000.32||1,104.42|
|Issue Period||12th July to 14th July 2023|
|Deadline for accepting UPI mandate||Until 5 PM on the issue closing day|
|Finalization of Allotment||19th July 2023|
|Initiation of Refunds||20th July 2023|
|Credit of Shares||21st July 2023|
|Date of Listing||24th July 2023|
|Mandate end date||29th July 2023|
|Anchor Investors Lock-In End Date||14th August 2023|
How to apply to the Utkarsh Small Finance Bank Limited IPO?You can apply for the Utkarsh Small Finance Bank Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone