Utkarsh SFB stock rallies 5% on 31% surge in Q3 gross loan portfolio

Utkarsh Small Finance Bank Q3 gross loan portfolio grows 30.8% YoY to Rs 16,408 crore.

Shares of Utkarsh Small Finance Bank (SFB) zoomed nearly 5 percent in early trade on January 5 after registering a 30.8 percent growth in Q3 loan portfolio on-year to Rs 16,408 crore. At 9:15am, the stock was trading at Rs 60.30 on the NSE.

While the bank's gross loan portfolio reached Rs 16,408 crore, its deposits too recorded a substantial rise of 17.6 percent over last year and 8.2 percent over the last quarter, reaching Rs 15,111 crore.

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The bank's Current Account Savings Account (CASA) deposits grew 11.6 percent on-year and a 8.3 percent on-quarter to Rs 3,016 crore. However, the CASA ratio experienced a slight year-on-year decrease from 21 percent to 20 percent, but it improved sequentially from 19.9 percent.

Stock call: Check brokerage views, target prices

Brokerage firm ICICI Securities is bullish on Utkarsh Small Finance Bank and has recommended a ‘buy’ rating on the stock with a target price of Rs 70 in its January 1 research report.

In summary, Utkarsh Small Finance Bank's latest financial results show robust expansion in its loan portfolio and total deposits, indicating positive momentum and a healthy influx of funds into the bank. The growth in CASA deposits further highlights increased customer participation in low-cost banking services.

Stock Performance

The Utkarsh SFB stock has given a return of 20.62 percent over the last six months. The benchmark Nifty Bank index has given a return of 6.74 percent over the same duration.

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