The origin story
Utkarsh CoreInvest Limited started out as an NBFC in 2010, focusing on providing microfinance to unserved and underserved segments and in particular in the states of Uttar Pradesh and Bihar.
It incorporated Utkarsh Small Finance Bank Limited (Utkarsh SFB) as a wholly owned subsidiary in 2016 and transferred its microfinance business to Utkarsh SFB which commenced its operations from January, 2017.
Headquartered in Varanasi, Uttar Pradesh it now operates across India with a presence in 26 States and Union Territories with 830 Banking Outlets and 15,424 employees, as of March 31, 2023.
The business
Utkarsh SFB mainly focuses on microfinance and has been diversifying their business product portfolio to include non-micro banking loans to reduce dependence on their microfinance business and grow their secured loan portfolio.
Geographical spread of the business
They focus on rural and semi urban areas and as of March 31, 2023, had 3.59 million customers (both deposit and credit) majorly located in rural and semi-urban areas primarily in Bihar and Uttar Pradesh that, in Fiscal 2022, are among the states with the best asset quality but with low and moderate credit penetration. These states constituted 30.88% and 25.98% of their total Gross Loan Portfolio respectively.
They are now looking to strengthen their presence in other states and have started working on some partnerships for the same.
Comparison of Utkarsh SFB with its peers
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It has the third fastest Gross Loan Portfolio growth between Fiscal 2019 and Fiscal 2023 among SFBs with a Gross Loan Portfolio of more than ₹ 60 billion.
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It reported third highest CAGR in terms of deposits between Fi scal 2019 and Fiscal 2023
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It has the best cost to income ratio amongst compared SFBs in as of Fiscal 2023
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It reported second highest RoE and second highest RoA among the compared SFBs as of Fiscal 2023
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It has the second lowest NNPA among compared SFBs as of Fiscal 2023
Objects of the issue
Utkarsh SFB will utilize the Net Proceeds from the Issue towards augmenting its Tier - 1 capital base to meet its future capital requirements. A part of the proceeds will also be used towards meeting the expenses in relation to the Issue.
Financial Snapshot (Rs in Cr)
| Period Ended | Total Assets | Total revenue | PAT | Net worth | Reserves and surplus |
|---|---|---|---|---|---|
| March 31, 2020 | 9,404.32 | 1,406.18 | 186.74 | 1,019.50 | 260.23 |
| March 31, 2021 | 12,137.91 | 1,705.84 | 111.82 | 1,368.35 | 520.02 |
| March 31, 2022 | 15,063.77 | 2,033.65 | 61.46 | 1,572.30 | 676.78 |
| March 31, 2023 | 19, 117.54 | 2,804.29 | 404.50 | 2,000.32 | 1,104.42 |
For more information, you can check the IPO Prospectus filed by the company 
Important information regarding the IPO
| Issue Period | 12th July - 14th July 2023 |
|---|---|
| Price Band | ₹ 23-25 |
| Minimum Bid Quantity | 600 and multiples thereof |
| Face Value | ₹ 10 per share |
| Number of Shares | 200,000,000 shares |
| Issue size | ₹ 500 Cr |
| Date of Allotment | 19th July, 2023 |
| Initiation of Refund | 20th July, 2023 |
| Credit of shares | 21st July, 2023 |
| Date of Listing | 24th July, 2023 |
| Mandate end date | 29th July, 2023 |
| Anchor Investors Lock-in End Date | 14th August, 2023 |
How do I apply for Utkarsh Small Finance Bank Limited IPO?
You can apply for it using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
Where do I check the allotment status for Utkarsh Small Finance Bank Limited IPO?
You can check the allotment status on the website of the Registrar and Transfer agent .
Alternatively, you can also check the allotment status on the NSE website .