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 c...