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.
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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.
Company Name : Utkarsh Coreinvest Limited
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
Key institutional investors in Utkarsh include Aavishkaar Goodwell, Commonwealth Development Corporation (CDC), International Finance Corporation, Lok Capital, Norwegian Microfinance Initiative (NMI), Faering Capital India Evolving Fund, RBL Bank Limited, Jhelum Investment FUND I, HDFC Ergo General Insurance Company Ltd, ICICI Prudential Life Insurance Company Limited, HDFC Standard Life Insurance Company Limited, Shriram Life Insurance Company Limited, Small Industries Development Bank of India (SIDBI) and Sustainability Finance Real Economies (SFRE).
Utkarsh CoreInvest provides financial services. It holds 99.98% stake in subsidiary Utkarsh Small Finance Bank Limited and 78.49% stake in subsidiary Utkarsh Welfare Foundation.
The company has experienced and professional management team. The bank’s promoter, Mr. Govind Singh, was reinstated as the Managing Director and CEO in September 2018. The senior management comprises functional heads (core team members), most of whom have been associated with the bank since inception. Utkarsh Small Finance Bank (USFB) has developed a good second and third line of management for its operations. The team was strengthened with fresh recruitment at the senior level in key areas like liabilities, IT, risk, operations, compliance and treasury among others to smoothen the transition to an small finance bank (SFB).
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.
Good capitalisation profile supported by equity infusion. Despite its high pace of growth, the bank has been able to maintain good capitalisation indicators supported by regular capital infusion. The net worth, as on 30 September 2018, was Rs 738 crore (standalone) while the capital to risk weighted assets ratio (CRAR) was 27.53% (Tier 1: 23.02%) against the regulatory requirement of 15% (Tier 1: 7.5%).
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.
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.
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.