Utkarsh Small Finance Bank IPO

Microfinance Expertise: : The company has a sound understanding of microfinance sector with its legacy, serving the unbanked population in rural, semi urban areas.

Growing Retail Deposits: : A continuous growth in customer base has diversified the deposit franchi. The retail deposit base has grown from Rs 18,145 million as of March ‘20 to Rs 29,905 million as of March ‘21 and was Rs 37,553 million as of March ‘22.

Diversified Distribution Network: : They have an extensive network of Banking Outlets, as of March ‘22, they had 686 Banking Outlets across 22 States covering 224 districts in India of which 434 Banking Outlets were located in rural and semi-urban areas.

Risk Management: : They are focussed on managing risks inherent in our operations and in particular credit, market, liquidity, IT and operational risks.

Stable Growth: : They recorded second fastest AUM growth of 31.6% between Fiscal 2019 and Fiscal 2022 among SFBs with AUM of more than Rs. 50 billion.

Regulatory Risk: : Banks, esp microfinance banks are under stringent regulatory rules by RBI, any adverse guideline can impact business and viability.

Segment Risk: : SFBs don't rely on traditional collateral for micro loans but non traditional guarantees thus increasing risk of default.

Interest Rate Risk: : Any change or volatility in interest rates would affect interest expense on their interest-bearing liabilities and interest income from interest-bearing assets.

Regional Risk: : Company is concentrated in Bihar and UP thus bearing high risk due to any slowdown, geo political or natural events e.g. floods etc.