Utkarsh Small Finance Bank Q3 Updates: Total Deposits Up 33.5%

Utkarsh Small Finance Bank Ltd.'s total deposits rose 33.5% on a yearly basis to Rs 20,172 crore in the December quarter, according to the provisional figures released by the lender on Monday.

In the same quarter of the previous fiscal, the total deposits of the bank stood at Rs 15,111 crore.

Gross loan portfolio rose 16.2% on a yearly basis in the October-December period to Rs 19,057 crore, compared to Rs 16,407 crore last year, the data released by the bank showed.

The CASA ratio—the proportion of deposits that come from current and savings accounts—fell to 19.7% from 20% in the year-ago period.

The CASA deposits, however, rose by 31.7% to Rs 3,973 crore during the period under review, as compared to Rs 3,016 crore in the corresponding quarter of the previous fiscal.

Retail term deposits stood at Rs 10,163 crore in the December quarter, up 40.6% from Rs 7,228 crore reported in the year-ago period. The bulk deposits also rose 24% year-on-year to Rs 6,036 crore.

The liquidity coverage ratio stood at 184% as on Dec. 31, 2024, the lender added.

The quarterly updates shared by Utkarsh Small Finance Bank are a precursor to the financial results for the October-December period.

The updates have been shared days after the lender decided on selling off a portfolio of non-performing assets and written-off loans worth around Rs 335 crore to an asset reconstruction company. The ARC will purchase the NPA and written-off loans from the lender at a bidding price of Rs 52 crore, according to an exchange filing on Dec. 27.

Shares of Utkarsh Small Finance closed 3.35% lower at Rs 32.90 apiece on the National Stock Exchange, compared to a 1.62% fall in the benchmark Nifty. The share price has fallen 42.48% in the last 12 months.

Out of the two analysts tracking the company, one has a 'buy' rating on the stock, and one recommends 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 29.2%.