Utkarsh Small Finance Bank Ltd reported its Q4 FY25 results, showing a slight dip in revenue but a sharp decline in profitability. The bank’s interest earned for the quarter ended March 2025 stood at ₹8,796.23 million, down 1.79% from ₹8,956.20 million in the same quarter last year.
However, the bank saw a significant jump in other income, which rose 137.90% to ₹2,871.10 million from ₹1,206.85 million year-on-year. Despite the increase in income from non-interest sources, the bank’s profit after tax (PAT) dropped massively by 98.14% to ₹29.67 million compared to ₹1,596.56 million in Q4 FY24.
Utkarsh Small Finance Bank Financial Statement of Q4 Fy2025
| Parameter | Q4 FY25 (202503) | Q4 FY24 (202403) | % Change |
|---|---|---|---|
| Interest Earned | 8796.23 | 8956.20 | -1.79% |
| Other Income | 2871.10 | 1206.85 | 137.90% |
| Interest Expended | 4682.15 | 3556.73 | 31.64% |
| Operating Expenses | 4645.42 | 4645.42 | 22.76% |
| Operating Profit | 0.00 | 0.00 | 0.00% |
| Provisions & Contingencies | 2226.99 | 738.69 | 201.48% |
| Tax | 83.10 | 486.90 | -82.93% |
| PAT | 29.67 | 1596.56 | -98.14% |
| OPM (%) | 26.60 | 31.51 | -15.59% |
Rising Expenses and Provisions Hurt Profitability
Interest expenditure surged by 31.64% to ₹4,682.15 million from ₹3,556.73 million. Operating expenses remained flat quarter-on-quarter at ₹4,645.42 million, but provisioning and contingencies saw a massive jump of 201.48% to ₹2,226.99 million, up from ₹738.69 million.
Tax expenses also dropped significantly by 82.93%, coming in at ₹83.10 million compared to ₹486.90 million in Q4 FY24.
Operating Profit at Zero
For Q4 FY25, the bank reported zero operating profit. Despite having increased income sources, higher interest costs, rising provisions, and flat operational costs left no room for operating margins. This reflects in the operating profit margin (OPM), which fell to 26.60% from 31.51% in Q4 FY24.
Yearly Performance Also Affected
For the full year ended March 2025, the bank’s PAT stood at ₹237.07 million, a drop of 95.24% compared to ₹4,976.28 million in FY24. On the other hand, interest earned grew by 18.45% to ₹37,649.26 million, and other income surged 49.83% to ₹5,998.34 million. However, these gains were offset by a 34.77% rise in interest expended and a 189.83% increase in provisions.
Final Thoughts
Utkarsh Small Finance Bank’s Q4 FY25 results reflect rising costs and provisioning pressures despite stable revenue. The steep fall in net profit indicates challenges in maintaining profitability in the face of increasing expenses and credit risk. Going forward, investors should watch the bank’s provisioning trends and asset quality closely.
Disclaimer: This blog is for informational purposes only and should not be considered as financial advice or any buy/sell recommendations.
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