Utkarsh Small Finance Bank reports sixth consecutive quarterly loss
iStockDespite a broader recovery in the microfinance market, the bank’s loss in the July-September period was deeper than the Rs 34 crore in the preceding quarter.
Utkarsh Small Finance Bank’s operating profit for the quarter stood at Rs 85 crore. However, with provisions of Rs 166 crore, the lender recorded a net loss.
The bank’s operating profit in the first quarter stood at Rs 63.6 crore. In the second quarter of the last fiscal year, it was a net loss of Rs 3.3 crore.
The gross non-performing assets ratio for the Varanasi-headquartered lender stood at 5.96% at the end of September as compared with 6.09% three months back and 12.42% a year prior.
Net non-performing asset (NPA) ratio stood at 2.74% against 2.86% as of end-June and 5.02% as of September end last year.
Its capital adequacy ratio stood at 17.05%.
The bank’s gross loan portfolio grew 7.5% year-on-year to Rs 20,062 crore, with the share of secured lending rising to 52% from 47% a year ago. Deposits rose by 6.6% to Rs 23,869 crore, the bank said.