The company transitioned into a small finance bank on April 30, 2016, when it received its banking license from the Reserve Bank of India (RBI). Utkarsh Small Finance Bank officially began its operations in 2017 and has since played a significant role in providing financial inclusion to low-income groups. As of March 31, 2019, Utkarsh Coreinvest Ltd. held 99.99% of the shares in Utkarsh Small Finance Bank.

2. Business Divisions

Utkarsh Coreinvest Ltd. operates through a variety of banking and financial services that cater to a broad spectrum of customers, primarily focusing on low-income households and underserved areas. Some of the key business divisions are:

• Micro Banking: The core business of Utkarsh, providing microfinance loans to underprivileged communities. This includes group lending (Joint Liability Groups) and individual loans, aimed at empowering women and supporting small-scale entrepreneurs.
• MSME Loans: The bank provides loans to micro, small, and medium enterprises, helping them with capital for business expansion and working capital needs.
• Housing Loans: Utkarsh offers home loans to low-income families for purchasing or constructing homes.
• Wholesale Lending: This division offers loans to larger businesses and institutions for various capital requirements.
• Deposits and Payment Services: The bank offers a range of deposit accounts, including savings accounts (CASA), fixed deposits (FD), and recurring deposits (RD). It also provides digital services like internet banking, mobile banking, and payment solutions such as NEFT, RTGS, IMPS, and debit cards.

3. Financial Highlights

Utkarsh Coreinvest Ltd. has experienced steady financial performance, with notable growth in certain areas. Here are five key points on its financial highlights:

• Revenue Growth: The bank reported a revenue of ₹1,725 crores in FY 2020-21, up from ₹1,406 crores in FY 2019-20, marking a 22.68% year-on-year increase. This growth was primarily driven by an increase in its loan portfolio and deposits.
• Operating Profit Increase: Utkarsh Small Finance Bank recorded an operating profit of ₹438 crores in FY 2020-21, reflecting a 25.13% increase compared to the previous year. This indicates efficient management of operational costs and revenue generation.
• Net Interest Margin (NIM): The bank’s NIM increased to 11.59% in FY 2019-20, reflecting improved profitability on the loans it provided. This growth indicates a positive outlook for the bank’s lending operations.
• PAT Growth: In FY 2019-20, Utkarsh Small Finance Bank's Profit After Tax (PAT) surged to ₹186 crores, a remarkable 100% increase from the previous year’s ₹93 crores.
• Valuation and Share Price: As of the latest financial data, Utkarsh Coreinvest Ltd. shares are valued at ₹268 per equity share, with a market cap of ₹2,637.12 crores. The P/E ratio stands at 4.76, indicating a relatively undervalued position compared to industry norms.