Utkarsh Small Finance Bank

History

Utkarsh Small Finance Bank was originally established as Utkarsh Micro Finance in 2009 by Govind Singh, a banking veteran, to provide microfinance to underserved populations in Eastern Uttar Pradesh and Bihar.

In 2015, the Reserve Bank of India (RBI) granted it an in-principle license to operate as a Small finance bank. It commenced operations in January 2017. The bank successfully listed on the Indian STOCK exchanges in July 2023, with its IPO receiving a record-breaking subscription.

Operations

The bank operates as a scheduled commercial bank with a significant focus on rural and semi-urban financial inclusion. As of December 2025, the bank has expanded its network to 1,105 branches across 27 States and Union Territories.

Asset Mix

Historically a micro-lending focused entity, the bank has strategically shifted toward secured lending. As of late 2025, secured loans (MSME, Housing, and Wheels) account for 50% of the total loan portfolio, up from 41% the previous year.

Financials

For the fiscal year ending March 31, 2025, the bank reported a total revenue of ₹3,765 crore. However, in the 2025–26 fiscal year, the bank faced asset quality headwinds in the microfinance sector, reporting a net loss of ₹375 crore in the quarter ended December 31, 2025.

Key Financial Metrics (₹ in Crore)

Parameter

FY 2023–24

FY 2024–25

Total Income

3,178

3,765

Operating Profit

997

1,007

Net Profit

498

24

Total Assets

23,903

28,127

Net Worth

2,722

2,975

Corporate Social Responsibility

The bank conducts its CSR activities through the Utkarsh Welfare Foundation, focusing on financial literacy, health initiatives, and vocational training for women in rural areas. Its headquarters, Utkarsh Tower in Varanasi, is certified with a GRIHA 5-star rating for energy efficiency.

See also

  • Banking in India
  • List of banks in India
  • Financial inclusion