Tier II capital raised by Utkarsh Small Finance Bank
After a gap of almost two years, the Utkarsh Small Finance Bank (USFB) has decided on Sunday (July 12) to raise the Tier II capital worth Rs. 195 crore, in a bid to support business growth and enhance capital adequacy in the country. The money raised is expected to increase Capital Adequacy Ratio (CAR) by more than 300 basis points. The CAR stood at 22.19% at end of March 2020 and this capital raising exercise will increase the CAR by almost 3%.
ICRA has rated this Tier II issuance as (ICRA) A and highlighted the bank’s experienced management team, strong investor base at the holding company and adequate systems and processes in the bank. ICRA further mentioned that an improvement in the net interest margin and the comfortable asset quality in the rating rationale.
Utkarsh Small Finance Bank has a loan book of 6281 Cr, NIM of 11.59%, and Book value of 13.42%. The profit after tax (PAT) almost doubled to Rs. 186.74 crore in financial year 2019-20 from Rs. 93.9 crore achieved in financial year 2018-19. The gross NPA ratio is 0.71% and net NPA ratio is 0.18%, as on March 31, 2020.
Utkarsh Micro Finance Ltd has started its operations in September 2009 with a motive of providing financial and non-financial services in its area of operations to the unbanked population. The Micro Finance business was converted into a Small Finance Bank which started his journey with its incorporation on April 30, 2016. Utkarsh Micro Finance Bank is now holding the company of Utkarsh Small Finance Bank.
It provides many other products and services that include Wholesale Lending, Small, Medium and Enterprises Businesses Loans, Housing Loans, Institutional, Government and Tasc Services, Remittances, Mutual Funds, Insurance and Deposit Accounts, as well payment services likewise Debit Cards, Credit Cards, ATM Cards, Digital Payment Options and Pos Payments.
To Buy Utkarsh Small Finance Bank Shares, Kindly visit at https://www.armssecurities.com/utkarsh-micro-finance-ltd-unlisted-shares/
