Utkarsh Small Finance Bank reports 70cr 2nd quarter net loss
Business
Utkarsh Small Finance Bank just reported a ₹70 crore net loss for the second quarter, making it six quarters in a row with losses.
Even though the bank managed an operating profit of ₹85 crore, heavy provisions wiped that out.
On the bright side, its bad loan (NPA) ratio improved slightly to 5.96% by September.
Loan book 20,062cr deposits 23,869cr rise
Despite the ongoing losses, Utkarsh's loan book grew 7.5% year-on-year to ₹20,062 crore and deposits rose 6.6% to ₹23,869 crore.
The latest loss is bigger than last quarter's but way better than the massive ₹348.5 crore hit from a year ago.
Plus, with a capital adequacy ratio at 17.05%, the bank still has a solid financial cushion as it works through these challenges.