Q1 Results Live: Utkarsh Small Finance Bank profit jumps 28% to Rs 137 crore

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Utkarsh Small Finance Bank on Saturday posted a 28 per cent increase in its profit at Rs 137 crore in the first quarter ended June 30.

The bank had earned a net profit of Rs 107 crore in the same quarter a year ago.

Total income increased to Rs 1,071 crore during the quarter under review against Rs 812 crore in the same period last year, the bank said in a regulatory filing.

NII Up 6.1% at Rs 6,275.8 crore vs Rs 5,914 crore (YoY)

Gross NPA At 4.62% vs 4.98% (QoQ)

Net NPA At 0.99% Vs 1.22% (QoQ)

Revenue up 72% at Rs 257.4 crore vs Rs 150 crore (YoY)

EBITDA up 91% at Rs 154.4 crore vs Rs 81 crore (YoY)

Margin At 60% Vs 54% (YoY)

Board cleared proposals for raising funds in rupee or dollar by issuing Basel III compliant Additional Tier 1 Bonds and Tier 2 Bonds of up to Rs 25,000 crore to domestic and/or overseas investors during FY25.

The fundraising would be subject to the approval of the central government, wherever required, the lender said.

SBI board approves fund raise of up to Rs 25,000 cr via bonds

Other income at Rs 11,161 cr Vs Rs 12063 (YoY)

Provisions at Rs 3449 cr vs Rs 2501 cr YoY & Rs 1610 cr QoQ

Absolute GNPA at Rs 84226 cr Vs Rs 84276 cr (QoQ)

NNPA at Rs 21555 cr vs Rs 21051 cr (QoQ)

Net profit at Rs 17,035 crore

NII at Rs 41,125 crore

GNPA at 2.21% vs 2.24% QoQ

NNPA unchanged at 0.57% QoQ

Net Profit Up 37.3% at Rs 211.4 cr Vs Rs 154 Cr (YoY)

Revenue Down 2.1% at Rs 3,639 Cr Vs Rs 3,718 Cr (YoY)

EBITDA Up 9.3% at Rs 500 Cr Vs Rs 457.3 Cr (YoY)

Margin At 13.7% Vs 12.3% (YoY)

Net Profit Up 21% At Rs 430 Cr Vs Rs 356 Cr (YoY)

Revenue Up 19% At Rs 2,118 Cr Vs Rs 1,778 Cr (YoY)

EBITDA Up 23% At Rs 622 Cr Vs Rs 504 Cr (YoY)

Margin At 29.4% Vs 28.3% (YoY)

Analysts said that key things to watch out would be NIM, return on equity, unsecured loans, and CAR in the quarter.

Credit Growth – Credit growth is anticipated to be robust this quarter; however, rate hikes are likely to cause some pressure on margins, according to an Emkay report.

NII – Kotak Institutional Equities predicts a 9 percent year-over-year increase in Net Interest Income (NII), driven by a 14 percent year-over-year growth in loans.

Net Interest Margin (NIM) – Kotak Institutional Equities expects the Net Interest Margin (NIM) to decrease by approximately 10 basis points quarter-over-quarter, primarily due to slippages and higher costs of funds. Analysts also noted that slippages could rise further, maintaining elevated levels.

NIM will decline by around 10 basis points on a QoQ basis mostly led by slippage and higher cost of funds, said Kotak Institutional Equities. Slippages could inch up further at elevated levels, said analysts.

The most optimistic estimate sees SBI's net profit jumping 1.8 percent YoY and the most pessimistic projection suggests that net profit will fall 0.2 percent on a YoY basis.

SBI is expected to report a 9.53 percent increase YoY in net interest income (NII) at Rs 42,614 crore in Q1FY25, as per mean estimates by five brokerage firms.

Credit growth is expected to be strong during the quarter but rate hikes should lead to some softness in margins, said Emkay in a report.

Credit Growth - Credit growth is anticipated to be robust this quarter; however, rate hikes are likely to cause some pressure on margins, according to an Emkay report.

NII - Kotak Institutional Equities predicts a 9 percent year-over-year increase in Net Interest Income (NII), driven by a 14 percent year-over-year growth in loans.

Net Interest Margin (NIM) - Kotak Institutional Equities expects the Net Interest Margin (NIM) to decrease by approximately 10 basis points quarter-over-quarter, primarily due to slippages and higher costs of funds. Analysts also noted that slippages could rise further, maintaining elevated levels.