Utkarsh Small Finance Bank shares in focus after approving sale of NPAs worth Rs 355 crore

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Utkarsh Small Finance Bank shares will remain in focus on Monday following its decision to sell a portfolio of non-performing assets (NPAs) and written-off loans to an asset reconstruction company (ARC). The bank’s Management Committee approved the move during a meeting held on December 27, 2024.

The portfolio under consideration consists of unsecured stressed microfinance institution (MFI) loans with an aggregate outstanding principal of approximately Rs 355 crore as of September 30, 2024. The proposed sale will be conducted at a reserve price of Rs 52 crore, comprising cash and security receipts.


In the September quarter of FY25, the bank's standalone net profit fell 55% year-on-year to Rs 51.39 crore, despite a 26.47% rise in total income to Rs 1,089.54 crore.

Meanwhile, the small finance bank's gross NPAs stood at 718.74 crore, up from Rs 403.53 crore in the year-ago period. The net NPAs rose to Rs 159.97 crore from Rs 21.64 crore. The gross NPA ratio rose to 3.88% in the second quarter of FY25 against 2.81% in the second quarter of FY24.


Also Read: Ventive Hospitality Share Price Live: Ventive Hospitality IPO to debut on D-Street today. Check GMP, Other Details

As per Trendlyne data, the average target price of the stock is Rs 43, which indicates an upside of 43% from the current market prices. The consensus recommendation from 2 analysts for the stock is a 'Hold'.On Friday, Utkarsh Small Finance Bank shares closed at Rs 34.56, down 1.1% on the BSE, while the benchmark Sensex surged 0.29%. The stock has declined 32% in the past six months and 34% over the past 12 months, with the company’s market capitalization now at Rs 3,807 crore.Also Read: Senores Pharmaceuticals Share Price Live: Senores Pharmaceuticals IPO to debut on D-Street today. Check GMP, Other Details

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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