Utkarsh CoreInvest Ltd. (formerly known as Utkarsh Micro Finance Ltd.) is an RBI licenced NBFC – CIC – NDSI. It is a leading provider of banking and micro finance services. Utkarsh Coreinvest share price is around Rs 160 – 170 per share.
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The company’s affordable and accessible banking and micro finance services which are process centric, technology enabled and people oriented, enable the customers to avail reliable, scalable and sustainable financing at lower rate of interest. Its registered office and corporate office is in Varanasi (Uttar Pradesh).
Incorporated in 2009, Utkarsh Coreinvest Limited received a final small finance bank (SFB) licence from the Reserve Bank of India in November 2016 and completed the conversion to a bank in January 2017. The bank is promoted by Mr. Govind Singh, who was earlier the business head of micro banking at ICICI Bank.
Utkarsh Coreinvest Limited Unlisted Shares Details –
Company Name : Utkarsh Coreinvest Limited
CIN: U65191UP1990PLC045609
ISIN: INE396P01012
Face Value: Rs 10 per equity share
Company Type : Non-govt company, Public, Unlisted
Office Address : S-2/639-56, Varuna Vihar Colony,
J.P Mehta Road, Cantonment, Varanasi, 221002 Uttar Pradesh
Financing Status: Private Equity-Backed
Utkarsh CoreInvest provides financial services. Utkarsh Coreinvest Ltd. holds 75,93,12,698 shares (84.79%) of Utkarsh Small Finance Bank.
Financial Highlights of Utkarsh Coreinvest (Figs in Rs Crore)
| Particulars | 2021-22 | 2020-21 | 2019-20 |
| Total Income | 2034 | 1725 | 1406 |
| PAT | 61 | 112 | 187 |
| EPS | 0.7 | 1.46 | 2.49 |
| Book Value per Share | 18 | 16 | 13 |
According to the applicable accounting standard i.e. the Ind-AS based classification and categorizations, the company has recorded total comprehensive income of Rs 1.65 crore on a standalone basis and Rs 42.21 crore at consolidated level. The consolidated level net advances were Rs 9,943.41 crore and the total deposits were Rs 10,392.48 crore as at the close of the financial year.
The Company’s Net-worth as on March 31, 2022 stood at Rs 841.28 crore comprising of paid-up equity capital of Rs 98.33 crore and Reserves of Rs 742.95 crore (excluding Revaluation Reserve, Investment Reserve and Intangible Assets) on a standalone basis.
Whereas, on a Consolidated basis, the Net-worth stood at Rs 1,316.29 crore comprising of paid-up equity capital of Rs 98.33 crore, Reserves of Rs 1,217.96 crore and non-controlling interest of Rs 228.34 crore.
As at the close of the FY 2021-22, the Bank posted (as per applicable IGAAP accounting rules) a Net Profit of Rs 61.46 crore.
The Gross Non-Performing Assets (GNPAs) stood at 6.10% and the Net Non-Performing Assets (NNPAs) were at 2.31%. With the beginning of the 1st quarter of the year to fag end of the 2nd quarter, the exponential Pandemic challenge impacted the business growth, asset quality, margins and productivity but as it stalled to logarithmic, the growth on all fronts moved on and reached to a considerable business level of Rs 20,705 crore attaining a growth of 30% at the year’s end along with not only the signs of improvement but of firm step for a way forward on all financial indicators.
The Banking subsidiary successfully completed five (05) full years of its banking operations on January 22, 2022.
During the FY 2021-22, the Bank has further taken multiple business initiatives as aligned to its Mission, in the present context of being the preferred financial institution across all customer segments through technology enabled solutions that are sustainable, inclusive, and scalable, supported by a work culture that centers on passion, values and corporate ethics to deliver the best in class customer experience.
Utkarsh CoreInvest Shareholders
Strong investor profile. USFB is wholly owned by Utkarsh Coreinvest Limited (formerly Utkarsh Micro Finance Limited). CDC Group (formerly Commonwealth Development Corporation) is Utkarsh Coreinvest Limited’s largest shareholder with a 14.13% stake followed by RBL Bank at 9.99%. Other shareholders include International Finance Corporation, Aavishkaar Goodwell, Norwegian Microfinance Initiative and Sarva Capital.
INSTITUTIONAL INVESTORS of Utkarsh Coreinvest
1.Aavishkaar Bharat Fund
2.Aavishkaar Goodwell India Microfinance Development Company II Limited
3.Aavishkaar Venture Management Services Private Limited
4.British International Investment PLC (“BII”)
5.Faering Capital India Evolving Fund II & III
6.HDFC Ergo General Insurance Company Limited
7.HDFC Life Insurance Company Limited
8.Housing Development Finance Corporation Limited (HDFC Ltd.)
9.ICICI Prudential Life Insurance Company Limited
10.International Finance Corporation (IFC)
11.Jhelum Investment Fund
12.Lok Capital Growth Fund & Sarva Capital LLC
13.NMI Frontier FUND KS
14.RBL Bank Limited
15.responsAbility Participations Mauritius (RAPM)
16.Shriram Life Insurance Company Limited
17.Small Industries Development Bank of India
18.Sustainability Finance Real Economies (SFRE)
USFB operates in 11 states through 438 branches in 120 districts with the largest states being Uttar Pradesh and Bihar, which together accounted for 77% of the portfolio. The bank offers loans in the microfinance, MSME, affordable housing and wholesale lending segments. USFB had a portfolio of Rs. 3,652 crore as on September 30, 2018 with 88% of the portfolio comprising microfinance loans. The bank is expected to come out with an initial public offering (IPO) in FY 2021.
Comfortable liquidity position and financial flexibility; strong ability to raise funds from diverse sources – USFB’s liquidity position remains comfortable owing to a conservative liquidity policy, high cash balances and continued funding from promoters and investors. Focus on expanding deposits as a source of funds has increased with the commencement of banking operations. The bank has funding support from SIDBI, NABARD, MUDRA and other banks to cushion liquidity while it garners sizeable retail deposits. The bank’s liquidity profile is supported further by its enhanced borrowing ability, its scheduled bank status and its relatively shorter-tenor assets.
The business outreach is also being spread by setting up branches in all business verticals. The year closed with 164 Banking Branches (i.e. 111 Micro Banking Branches and 53 General Banking Branches), out of which 42 Branches are in Unbanked Rural Centers (URC). The year focused on conversion of Micro Finance Branches into Micro Banking. Outlets as a result of which 109 Micro Finance Branches got converted into Micro Banking Outlets. Further, the Standalone MSME business locations have been 9 and 12 as on March 31, 2018 and March 31, 2017 respectively.
SFBs are relatively new in the banking sector, and have been growing exceptionally well, by making strong inroads into credit market. The incremental market share of SFBs in credit as on September 2021 was pegged at 8%. In its span of 3.5 years, SFBs have made their mark in the banking sector, and have carved a market share of 5.6% in small loans.
Further, SFBs have also clocked a 42% CAGR for their loans, compared to a 13% for private banks, 8% for foreign banks and 2% for public sector banks, during the same period.
This growth has been spearheaded by the niche carved out by the SFBs in the small-ticket loans, which account for ~40% of total SFB loans.
Outlook
The microfinance sector is back on track as it is now being seen in the last leg of the demonetization led sufferings, and is looking forward to grow double digits.
SFBs are relatively new in the banking sector, and have been growing exceptionally well, by making strong inroads into credit market.
Vast un-banked population highlights the scope for innovation in delivery, which is actually being brought in by the Small Finance Banks (SFBs), which is further deepening Financial Inclusion initiatives, apart from bringing in the new generation banking for the other segments of society.
Going ahead all the MSME and Housing Loan outlets shall be within MB/GB Banking Outlets. However, the total locations where the Retail Assets Loans services are being provided. It is also planned to open 44 more Micro Banking outlets in the ensuing FY2019, taking the total number of micro banking outlets to 396 by the end of FY2019.
News Updates & Developments
Utkarsh Small Finance Bank gets Sebi’s go ahead to float IPO – October 2022
Utkarsh Small Finance Bank has received capital markets regulator Sebi’s go ahead to raise Rs 500-crore through an Initial Public Offering (IPO).
The Varanasi-headquartered Small Finance Bank’s (SFB) IPO is a complete fresh issue of shares and the entire proceeds will go to the lender, according to Draft Red Herring
Prospectus.
The lender may consider issue of securities aggregating up to Rs 100 crore in a pre-IPO placement round. If such placement is undertaken, the fresh
issue size will be reduced.
Going by the draft papers, proceeds from the fresh issue will be utilised to augment the lender’s Tier 1 capital base to meet future capital requirements.
Incorporated in 2016, Utkarsh commenced operations in 2017 and its product suite includes a range of deposit products, including saving accounts, salary accounts, current accounts, recurring and fixed deposits and locker facilities.
As on March 2022, its operations are spread across 22 states and Union Territories with 686 banking outlets and 12,617 employees serving 3.14 million customers majorly located in rural and semi urban areas primarily in the states of Bihar, Uttar Pradesh and Jharkhand.
Its gross loan portfolio grew from Rs 6,660.95 crore as of March 31, 2020 to Rs 10,630.72 crore as of March 31, 2022, while the total deposits almost doubled from Rs 5,235.21 crore to Rs 10,074.18 crore during the same period.
ICICI Securities and Kotak Mahindra Capital Company are the book running lead managers to the issue.