Utkarsh Small Finance Bank reports sixth consecutive quarterly loss
The Varanasi-headquartered lender recorded a net loss of Rs 70 crore in the July-September period as credit costs remained high.
Utkarsh Small Finance Bank recorded a net loss of Rs 70 crore in the second quarter, marking its sixth consecutive quarter of decline, according to The Economic Times.
The lender's operating profit for the July-September quarter was Rs 85 crore, but provisions of Rs 166 crore resulted in the net loss. This loss was deeper than the Rs 34 crore recorded in the preceding quarter.
The bank's gross non-performing assets (NPA) ratio stood at 5.96 per cent at the end of September, compared to 6.09 per cent three months ago and 12.42 per cent a year prior. The net NPA ratio was 2.74 per cent, down from 2.86 per cent in June and 5.02 per cent in September last year.
The bank reported a gross loan portfolio growth of 7.5 per cent year-on-year to Rs 20,062 crore. The share of secured lending increased to 52 per cent from 47 per cent a year ago.
Deposits rose by 6.6 per cent to Rs 23,869 crore. The bank's capital adequacy ratio stood at 17.05 per cent.