Utkarsh Small Finance Bank posts sixth straight quarterly loss
In short
Utkarsh Small Finance Bank reported a Rs 70 crore loss in the second quarter, its sixth straight quarterly loss. It had an operating profit of Rs 85 crore, but provisions of Rs 166 crore pushed it into the red.
The bank’s gross NPA ratio improved to 5.96% at the end of September, and its gross loan portfolio grew 7.5% to Rs 20,062 crore. Investors now have a mixed picture: better asset quality, but still weak profits.
What the reporting says
Utkarsh Small Finance Bank reported a Rs 70 crore loss in the second quarter, marking six consecutive quarters of decline. The lender still posted an operating profit of Rs 85 crore, but provisions of Rs 166 crore drove the net loss, while gross NPAs improved slightly to 5.96% at the end of September. Its gross loan portfolio grew 7.5% year on year to Rs 20,062 crore. The immediate takeaway is weaker profitability despite some balance-sheet improvement.
Why it matters
Utkarsh Small Finance Bank reported a second-quarter net loss of Rs 70 crore, extending its losing streak to six quarters. Operating profit was Rs 85 crore, but provisions of Rs 166 crore outweighed that result. The bank also reported a slight improvement in gross NPAs to 5.96% and loan book growth of 7.5% to Rs 20,062 crore. The report points to pressure on profitability despite some credit-quality improvement.