Utkarsh CoreInvest Limited (erstwhile Utkarsh Micro Finance Limited) is the promoting institution for 'Utkarsh Small Finance Bank Limited’. The Company through a slump sale transferred all its Assets and Liabilities on January 21, 2017, to its Subsidiary- Utkarsh Small Finance Bank Limited. Utkarsh CoreInvest Limited is a NBFC, and it started its operations way back in September 2009 with an aim to provide financial and non-financial services to the unbanked population. As of FY-23, the Bank had 830 banking locations operating over 22 States and 4 Union Territories, with its headquarters located in Varanasi, Uttar Pradesh.

Utkarsh CoreInvest Limited, formerly Utkarsh Micro Finance Limited, was founded in September 2009 to serve the unbanked population by offering financial and non-financial services.

The company began offering credit in FY 2009 under the Joint Liability Group (JLG) model.

Over time, it added Micro Enterprise Loans (MEL), Housing Loans, and Micro Pension Products to its portfolio.

The Reserve Bank of India authorized Utkarsh Micro Finance to open a “Small Finance Bank” in FY 2016.

As a result, the business founded ‘Utkarsh Small Finance Bank Limited’ as a subsidiary.

Utkarsh Micro Finance used a slum sale to transfer all of its assets and obligations—aside from a few statutory liabilities, cars, and assets—to its subsidiary, Utkarsh Small Finance Bank Limited, in accordance with regulatory rules. Starting on January 23, 2017, the subsidiary conducted banking operations.

A Snapshot of Utkarsh SFB

1. Products: Provides a range of loan products including microfinance loans, personal and business loans, housing loans, gold loans, and vehicle loans.
2. Strong Deposit Base: Offers fixed deposits (FDs), current accounts, and savings accounts, with a total deposit growth of 36.09% in FY-23.
3. Expansive Branch Network: Operates 830 banking outlets, with a significant focus on rural and semi-urban areas, exceeding regulatory requirements for unbanked area coverage.
4. Micro-Banking and General Banking: The network includes 579 micro-banking branches and 251 general banking branches, catering to diverse customer needs.
5. Gross Loan Portfolio: Achieved a 31% increase in the gross loan portfolio, which stood at ₹13,957.11 crore as of March 31, 2023.
6. Commitment to Expansion: Opened over 270 new branches during FY22 and FY23, showcasing resilience and growth despite COVID-19 disruptions.
7. Rural and Semi-Urban Focus: Approximately 27.35% of branches are in unbanked areas, promoting financial inclusion.

For More details on Utkarsh Small Finance Bank, click here.

Shareholding Pattern

Shareholding above 5%	Holding %
CDC Group PLC	13.95
RBL Bank Limited	9.86
NMI Frontier Fund KS Norway	7.83
Faering Capital India Evolving FUND II	7.78

What Differentiates Utkarsh CoreInvest Limited From Its Competitors?

Utkarsh CoreInvest Limited stands out from competitors such as AU Small Finance Bank, Fincare Small Finance Bank, and Ujjivan Small Finance Bank in several ways. While these competitors are prominent players in the Indian banking sector, Utkarsh CoreInvest Limited differentiates itself by expanding its services across 18 states and union territories, a network of over 530 outlets and a continuous focus on reaching remote areas. Moreover, investors place trust in Utkarsh CoreInvest Limited, evident from its successful fundraising efforts, having raised over $93.5 million across six funding rounds, compared to AU Small Finance Bank’s $130 million raised over 12 rounds.

Utkarsh CoreInvest Awards & Recognitions

1. Recognized as Microfinance India Organization of the Year (Small and Medium Category) in 2012.
2. Honoured with the Mix STAR (Socially Transparent And Responsible) Award in 2013.
3. Received the MF Transparency Seal of Pricing Transparency Award.
4. Acknowledged with CIMSME’s MSME Banking Excellence Award in 2015.
5. Awarded the MFIN Awards in 2018 for the “Effective Grievance Redressal Systems” category.Received the “Social Impact Initiatives Award” at the 5th Eastern India Microfinance Summit in 2019.

Financial Results 

All Values in INR - Crs. (FY24 results of Utkarsh Coreinvest Ltd.)

 

Particulars	FY 2023-2024	FY 2022-2023	Change Y-o-Y
Deposits	17473	13,710.1	27%
Gross Loan Portfolio	18299	13,957.1	31%
Total Income	3383	2,804.2	21%
Operating Profit	1845	1830	-
Profit After Tax	498	404.50	23%

Utkarsh Small Finance Bank IPO

Allotment and Listing Details The allotment for Utkarsh Small Finance Bank IPO was completed on Wednesday, July 19, 2023, with shares listed on both BSE and NSE on July 21, 2023. The IPO price band was set at ₹23 to ₹25 per share, with a minimum lot size of 600 shares per application. To learn more about whether you should invest in the Utkarsh IPO, read this blog.

Utkarsh Small Finance Bank Considers Reverse Merger with Utkarsh CoreInvest

They received a proposal for a reverse merger, which they will evaluate in an upcoming board meeting. This move is to comply with RBI guidelines on shareholding in banking companies. The bank’s profits increased by 23% in the last quarter, with net interest income also rising. They have re-appointed Govind Singh as managing director and CEO. Utkarsh Small Finance Bank started operations in 2017 and was listed on exchanges in July 2023. Experts predict good returns for the bank due to its presence in underdeveloped areas and strong track record in managing assets.

Peer Comparision

Particulars	Utkarsh Small Finance Bank	Ujjivan Small Finance Bank
Total Income	3383	6464
Net Interest Income	1885	3409
PAT	498	1281
PAT Margins	14%	20%
Gross Loan Portfolio	18299	29780
Total Deposits	17417	31462
GNPA	2.51%	2.1%
NNPA	0.03%	0.3%
Net Interest Margins	9.44%	9.1%

Value Unlocking