Utkarsh Coreinvest Ltd. announced its FY24 results

Financial Developments:

On a consolidated basis, UCL reported a total comprehensive income of ₹354.12 Cr, with a consolidated net worth of ₹2,022.90 Cr, showcasing its strong capital reserves and solid financial health. USFBL, its banking arm, saw significant growth, with its loan portfolio increasing by 31.11% to ₹18,299 Cr and deposits rising by 27.44% to ₹17,473 Cr, reflecting robust expansion in both assets and liabilities. The bank's net profit grew by 23% to ₹497.63 Cr, while asset quality improved, with gross NPAs dropping to 2.51% and net NPAs to a minimal 0.03%. Additionally, USFBL maintained operational efficiency with a cost-to-income ratio of 56.4%, and its CRAR of 22.6% underscores a strong capital buffer to handle future risks.

Operational Developments:

The bank continued its aggressive branch expansion, operating 888 branches across 26 states and Union Territories, with a significant focus on rural and semi-urban areas. A large portion of these are micro-banking branches, serving underserved communities. USFBL’s core strategy centers on financial inclusion, targeting over 45 lakh customers, particularly women entrepreneurs, low-medium income households, and MSMEs. Notably, 60% of its gross loan portfolio comes from financially underserved regions, especially in states like Bihar, Uttar Pradesh, and Jharkhand. Diversification in retail loans gained momentum, with non-microfinance lending growing to 38.18%, driven by MSME loans, housing finance, and commercial vehicle/construction equipment loans. The housing loan portfolio grew by 30% to ₹677 Cr, and MSME lending surged by 66.68%, reflecting the bank's long-term growth strategy in these sectors.

Outlook and Strategy:

USFBL focused on building a more granular deposit base, with an emphasis on retail deposits. As a result, CASA and retail term deposits grew to 66.11% of total deposits. The bank also continued diversifying its asset portfolio by increasing non-microfinance lending, which helps reduce concentration risk in the micro-banking segment. Strong credit monitoring and governance frameworks are reflected in industry awards and a notable reduction in NPAs, underscoring the bank's commitment to robust risk management practices as it expands its loan book.