Small Finance Bank provides saving and credit options to small businesses, micro and small industries as well as small marginal farmers and unorganized sector where large commercial banks are not readily available. Small Finance Bank are restricted to such target customers while Scheduled Commercial Banks do not have any target customer restrictions.

 Small Finance Bank has been started in India with a motive of an inclusive economy. 

Utkarsh Small Finance Bank with its Head Quarters at Varanasi, UP, mainly focuses in UP, Bihar i.e. northern parts of India which are underdeveloped, underpenetrated and have immense growth opportunities unlike other banks who are focused to Maharashtra, Gujrat and Southern part of India which are bit saturated and this is its moat.

It is mainly focused to give unsecured loans i.e. loans which are not backed with assets such as personal loan etc which makes it vulnerable for NPA.

Further entry of many competitors in Small Finance Sector also makes it vulnerable.

Mr Govind Singh is the Managing Director (MD) and Chief Executive Officer (CEO) of Utkarsh Small Finance Bank.

Mr Govind Singh is the Managing Director (MD) and Chief Executive Officer (CEO) of Utkarsh Small Finance Bank having Bachelor of Commerce (B. Com) from Delhi University (DU). He has wide experience of working with ICICI Bank and hence having grip on management of retail loans. He also explored Allahabad Bank, State Bank of Patiala, Bank International Indonesia, UTI Bank Limited and Surya Fincap Limited.

Yes, IFC has its stake in Utkarsh Small Finance bank which is very good sign for investors.

Top competitors of Utkarsh Small Finance Bank include Ujjivan Small Finance Bank, AU Small Finance Bank etc.

As per 2024 Q2 results its year on year (YoY) profits has been grown by 30% and hence indeed it is profitable.

As per Invest Information and Credit Rating Agency (ICRA), Long term rating  upgraded and outlook revised to Stable from Positive and short term rating reaffirmed.

Utkarsh Small Finance Bank, is Scheduled Bank under RBI which increases the trust, transparency reliability and safety.

Utkarsh Small Finance Bank is a listed public limited company in private sector.

Small Finance Banks must have 75% customers from priority lending sector, such as unorganized sector, marginal farmers, micro and small industries, while Scheduled Commercial Banks dont have any customer restrictions.

Further Small Finance Bank only need to have Rs 200 Cr as seed capital to start the business, while Scheduled Commercial Banks need more seed capital, which is Rs 500 Cr to start thebusiness.

NBFC dont need to set aside any capital in form of CRR or SLR, as NBFC dont get money in form of Saving Account or Current Account, while Small Finance Bank and Scheduled Commercial Bank need to maintain CRR and SLR.