Utkarsh Micro Finance Ltd - Unlisted Investments
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Utkarsh Micro Finance Ltd

Corporate Background:

Corporate Background: Founded in 2009 by Govind Singh, Utkarsh Micro Finance Ltd focuses on serving the bottom-of-the-pyramid (BOP) customer segment. The company’s customer base is predominantly women focused; the joint liability group loans are specifically designed for the lower-income women.

The Varanasi headquartered MFI has operations in Uttar Pradesh, Bihar, Jharkhand, Maharashtra, Madhya Pradesh, Chhattisgarh, Delhi-NCR, Uttarakhand, Haryana, and Himachal Pradesh.

Currently, it is serving over 1.2 million clients with a portfolio of over Rs 1,809 crores.


The turning point:

Utkarsh MFI got RBI’s “in-principle” approval to set up a small finance bank in October 2015 and is the only and sole lender in U.P to get a small bank license. In November 2016 it has received a final license from The Reserve Bank of India (RBI) to start operations as Small Finance Bank (SFB). The new SFB will be named as ‘Utkarsh Small Finance Bank Ltd-‘ and is likely to start banking operations in early 2017.


Milestones in 2016-17:

Skoch Award (Gold) – 2016 for inclusive insurance.
CARE has revised the company’s Long-term bank facilities to CARE A from CARE A-.
CARE has revised the company’s NCD rating facility to CARE A from CARE A-.
Received final license for Utkarsh Small Finance Bank Ltd.


Milestones in 2015-16:

Expanded in the region of Chhattisgarh and Jharkhand.
Client base more than 10 lakh – achieved stated (in 2009) VISION for 2016.
Grading upgraded to M1 (Highest) from M2+ by ICRA Ltd.
CARE has assigned A- on Bank Loan rating.
CISME award – MSME Banking Excellence Award.
Received in- principle Approval for Small Finance Bank


Existing Investors Include:
 AavishkaarGoodwell, CDC UK, IFC, Lok Capital, Norwegian Microfinance Initiative (NMI), HDFC Standard Life Insurance Co. Ltd, HDFC Ergo General Insurance Co. Ltd, ICICI Prudential Life Insurance Co. Ltd, Shriram Life Insurance Co. Ltd, RBL Bank Ltd, Small Industries Development Bank of India and private equity funds Faering Capital and Arpwood Capital. Aditya Deepak Parekh is an Additional Director in Utkarsh MFI.

Key Parameters: ( As on 31st March 2018)

Face Value———10.
Share Capital (In. Rs.) —96,48,08,440.
Reserves and Surplus——-6,69,04,12,020.
Book Value per share in 2017-18———[email protected] 80.

   
Parameters 2018 2017 %chg
Share capital 964,808,440 847,287,970 13.9%
Reserves and Surplus 6,690,412,020 5,906,621,435 13.3%
Total 7,655,220,460 6,753,909,405 13.3%
Revenue from operations 4,775,862,772 3,916,831,699 21.9%
Other income 881,424,770 309,223,633 185.0%
Total revenue 5,657,287,542 4,226,055,332 33.9%
Operating expenses 2,077,098,355 714,198,966 190.8%
Employee benefit expenses 1,274,826,391 847,740,903 50.4%
Finance Costs 2,486,982,136 1,835,690,162 35.5%
D&A 165,414,660 37,664,215 339.2%
Other expenses 565,938,639 261,762,450 116.2%
Total expenses 6,570,260,181 3,697,056,696 77.7%
Profit before Tax (912,972,639) 528,998,636
PAT (609,423,350) 343,559,149
EPS -6.84 5.41
Shares outstanding 96,480,844 84,728,797
Book Value per share 79.34445992 79.71208897
   

Important highlights:

Loan portfolio quality of the company – Click to download
Stake by faering capital – Click Here

 

Future plans:
1) Utkarsh Small Finance Bank looks to cross-sell insurance; plans 400 branches
2) Utkarsh Micro Finance gets RBI approval for small finance bank

 

Utkarsh In the News:

• Our book size will be Rs 10,000 crore in 5 years: Govind Singh, Utkarsh Small Finance Bank. Our current cost of funds is more than 12%. It used to be in the 13.5% to 14% range a year ago. – 2 Aug 2017
• HDFC ERGO Joins Hands with Utkarsh Small Finance Bank to Offer General Insurance Products
• Utkarsh to launch Small Finance Bank on January 23. This is the first company to launch operation after demonetisation in the small finance banking space. 22 Jan 2017
• Utkarsh MF gets RBI nod for small finance bank, Press Trust of India | Mumbai November 28, 2016
• Utkarsh Micro Finance raises Rs 30 crore short-term funds from Ratnakar bank, ByAtmadip Ray, ET Bureau|Updated: Oct 12, 2015
• Utkarsh Micro Fin to raise Rs 500 crore, Sep 22, 2015: The Times of India (Chennai)