Utkarsh Micro Finance(Core Invest) Unlisted Shares Annual Reports

Utkarsh Micro Finance(Core Invest) Unlisted Shares

Utkarsh CoreInvest Limited’s Annual Report for FY 2023-24 Utkarsh CoreInvest Limited (UCL), formerly Utkarsh Micro Finance Limited, presents its 34th Annual Report, highlighting its transformation into a Public Limited Company and its entry into the banking sector via Utkarsh Small Finance Bank Limited (USFBL), established in 2016-17. USFBL has now become a listed banking company through an IPO, enabling it to meet licensing conditions and dilute equity of UCL, which holds a 69.06% stake as of March 31, 2024. NBFCs have a significant role in financial inclusion, and the regulatory framework from the Reserve Bank of India's Scale Based Regulation (SBR) allows for more flexibility, ethical practices, customer protection, and risk management. RBI's IT Governance Direction aims to standardize IT practices for NBFCs. The Indian economy shows confidence with an 8.2% GDP growth in 2023-24. USFBL has expanded to 26 states and Union Territories with 888 branches, serving over 45 lakh customers. It aims to create financial inclusivity and digital access. As of FY 2023-24, USFBL's deposit base reached ₹17,473 Crore (up 27.44%) and loan book ₹18,299 crore (up 31.11%). The bank’s employee base has grown to over 16,000. According to Ind-AS, UCL recorded a total comprehensive income of ₹1.41 crore standalone and ₹354.12 crore consolidated. Net advances were ₹17,608 crore, and total deposits were ₹17,997 crore. The company's Net-worth on March 31, 2024, stood at ₹850.49 crore standalone and ₹2,022.90 crore consolidated. USFBL reported a net profit of ₹497.63 crore, with Gross Non-Performing Assets (GNPAs) declining to 2.51% and Net Non-Performing Assets (NNPAs) at 0.03%. Bank branches in Unbanked Rural Centres (URCs) are at 27.14%. USFBL promotes financial inclusion, especially for women entrepreneurs, and its gross loan portfolio is 60% in Bihar, Uttar Pradesh, and Jharkhand. It is building retail loan products like MSME, Housing, and Commercial Vehicle (CV) & Construction Equipment (CE) loans. It is upgrading technology with digital solutions like Internet & Mobile Banking and UPI Lite, and also distributes third-party products like insurance and mutual funds. Non-micro finance lending has increased to 38.18% of the portfolio. USFBL received the 'Credit monitoring & Risk Team of the Year' award and the “Most Preferred Workplace 2023-24”. UCL expresses gratitude to partners and shareholders. Board of Directors: The board consists of G. S. Sundararajan (Non-Executive Independent Director, Chairperson), Mr. Atul (Independent Director), Aditya Deepak Parekh (Nominee Director representing Faering Capital), and Suman Saurabh (Managing Director & CEO). Committees of the Company: Various committees are formed by the board: Audit Committee, Corporate Social Responsibility Committee, Nomination & Remuneration Committee, Share Allotment Committee, Group Risk Management Committee, and Promoter Dilution Monitoring Committee. Senior Management: Suman Saurabh (MD & CEO), Harshit Agrawal (CFO), Neeraj Kumar Tiwari (Company Secretary). Management Discussion and Analysis: UCL is a registered core investment company (CIC) and the holding company of USFBL. USFBL focuses on financial inclusion across the country and has over 4.5 million customers. Vision and values center on resilience, ethics, and excellence. Indian Economy: India's GDP growth reached 7.6% in FY 2023-24. Industry Overview: Banking sector loan portfolio is estimated to grow by 16% during FY 2023-24. SFBs play a role in extending banking services to economically weaker sections. Microfinance loan portfolio expanding at 25% year-on-year. SFBs have regained investor confidence with successful IPOs, focusing on financial inclusion and underpenetrated regions. MFIs are leveraging technology for operations. USFBL: Has a strong presence through 888 branches, with 612 MB branches and 276 GB branches. It aims to promote financial inclusion, focusing on financial products catering to women, low-medium income households, etc. in Bihar, Uttar Pradesh, and Jharkhand. It aims for technology upgrades, with digital banking and UPI integration, and a shift toward non-micro finance lending. Utkarsh SFBL was the recipient of awards. As on March 31, 2024 the Bank had 86 MSME, 56 Housing and 44 CV & CE branches respectively. Branches across 22 states and 4 UTs are classified into Micro-Banking (MB) and General Banking (GB) branches. The Bank is focusing on building granular deposits. The Bank’s CASA + Retail Term Deposits portfolio together stood at ₹11,550.72 crore as of March 31st 2024. Assets - Lending Products: USFBL focuses on retail loan books, including micro-banking, MSME, housing, and CV & CE loans. Bank’s gross loan portfolio grew by 31.11% from last year and stood at ₹18,299.28 crore at the end of the reported year. The Bank offers Joint Liability Group (JLG) loans, micro banking business loans to matured JLG clients and PM SVANidhi loans to street vendors. The MSME loan book grew by 66.68% to reach ₹2,556.99 crore. Micro-Banking Lending: Commencing its operations from September 2009 from Uttar Pradesh, USFBL takes pride in establishing an impressive record in the microbanking sector. The JLG structure leads to a healthy credit discipline among the borrowers. PM SVANidhi Loan Scheme: The Ministry of Housing & Urban Affairs had launched Prime Minister’s Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) loan scheme. Directors' Report: The Director’s Report provides an overview of the company’s performance during FY 2023-24. Standalone financial highlights include a total income of ₹4.52 crore, with a profit after tax of ₹1.45 crore. Consolidated financials show a total income of ₹3,383.55 crore and a profit after tax of ₹329.84 crore. No dividend is recommended for FY 2023-24. The Net-worth stood at ₹850.49 crore standalone and ₹2,022.91 crore consolidated. Corporate Governance and Statutory Disclosures: Details on the company's corporate governance philosophy, board composition, committee structure, remuneration policy, statutory compliance, and related party transactions are provided. Other Aspects: Information on changes in directors and key managerial personnel, whistle blower policy, risk management policy, statutory auditor appointment, ESOP details, and other financial matters are outlined. Management Discussion and Analysis - Banking Subsidiary (USFBL) Network: At the end of the financial year 2023-24 the bank has extended it’s network to 888 branches in 26 states/UTs as compared to 830 in the previous year 2022-23. Also number of employee increased to 16,081 in the present year from 15,424 of the last year. Assets: Gross Loan Portfolio increased from ₹13,957 Cr. to ₹18,299 Cr. representing growth of 31.1%, showing confidence of the creditors for the banks potential and growth. Liabilities: Bank Deposits increased at rate of 27.4% from ₹13,710 Cr to ₹17,473 Cr in the Financial year 2023-24 as compared to last year Financial year 2022-23. Capital Structure: Capital + Reserves increased by 49% from ₹2,000 Cr to ₹2,973 Cr, showing the strength of capital structure of bank. Asset quality: Improved substantially by reducing Gross NPA and Net NPA from 3.2% and 0.39% to 2.5% and 0.03% respectively. Business Performance: USFBL provides facilities in Micro-credit, housing, Commercial Equipment with presence in UP, Bihar, MP and Jharkhand for more than 60%. Vision and Mission: Vision is to provide finance service in underserved area especially for low-middle income families. Liabilities-Deposits: Aims to increase share of CASA plus retail term deposits continuously by increase centers of the company. Total is at 66.11% with a jump of approximately 5% since the Financial year 2022-23. Assets-lending products: Focusing on loans with a presence of JLG, Micro Business, MSME (Retail assets), Housing and Vehicles portfolio. Micro-Banking Lending: 22.76% growth YoY. Credit Function: Seeks to work at diversification and to build a proper loan and borrowing portfolio. Risk Management: Aims at all regulatory compliances, with efficient management of available data. Looking Forward: Expecting financial stability. Aims to be a retail-focused Bank. UCL aims to ensure better growth for the company, and for the stakeholders in the coming future.

Utkarsh Micro Finance(Core Invest) Unlisted Shares

Utkarsh CoreInvest Limited (UCL) Annual Report FY 2022-23 Summary: The report opens with a message from the Managing Director & CEO, Ashwani Kumar, highlighting the transformation of 'Utkarsh Micro Finance Private Limited' to 'Utkarsh CoreInvest Limited' (UCL), a Public Limited Company, and its advancement into the banking sector by acquiring a Small Finance Bank license from the Reserve Bank of India (RBI) and forming Utkarsh Small Finance Bank Limited (USFBL). Kumar acknowledges the support received and mentions the importance of Non-Banking Financial Companies (NBFCs) in driving India's economy. He refers to the 'Scale Based Regulation (SBR)' implemented by the RBI, which categorizes UCL as an 'NBFC - Middle Layer (NBFC-ML)'. The report details the expanded definition of microfinance loans and the bank's increasing outreach in 26 States and Union Territories through 830 branches. It states that the bank is focused on sustainable, responsible and inclusive banking and mentions that it has over 35 lakh active customers and 13,957 crore of Assets Under Management. The document discusses the Indian economy, noting inflationary pressures but highlighting India's resilience and sustained growth. It then gives an overview of the Indian banking industry, including the roles of public and private banks, rural banks, and cooperative banks and its assets. The small finance banking industry, including the role of Small Finance Banks (SFBs) and their contribution to financial inclusion, is examined. It covers demand drivers for credit such as increasing population, rising disposable incomes, and rising credit penetration and commercial vehicle & construction equipment finance. The company's overview section of the document describes Utkarsh Small Finance Bank Limited's (USFBL) presence across 22 states and 4 Union Territories with 830 banking outlets, including Micro-banking (MB) and General Banking (GB) branches. It underscores USFBL's commitment to financial inclusion, serving underserved populations and having a total customer base of over 3.5 million supported by over 15,424 employees. It mentions a branch network, loan book growth, deposits growth, and focus on financial inclusion. The document highlights that USFBL offers various deposit products, ATM-cum-debit cards, and third-party products, and also uses a digital platform for ease of transactions. The Bank has entered into a partnership with ICICI Direct to offer a three-in-one product to its deposit clients. The Bank has received registration with the SEBI as Banker to an Issue (BTI) which will enable the Bank to offer the facility of Application Supported by Blocked Amount (ASBA) through multiple channels to its depositors for applying to various Public Issue. The document provides a breakdown of the loan portfolio by category, including Microbanking and Retail Assets, and discusses the bank's strategy for increasing fee income, capitalizing on cross-selling opportunities, and revolutionizing technology use for last-mile delivery to customers. Furthermore, it talks about the various cashless programs initiated by the company for easy payments. The report also mentions cashless disbursement in micro-banking to bank accounts and further penetration of UPI is expected. The report contains a section on Risk Management, detailing the Bank's focus on risk management and effective operations. It covers risk management at the core of operations, risk management structure, credit risk, market risk, operational risk, fraud risk, IT risk, liquidity risk. Financial performance highlights a net profit of 405 crore. The auditor's report emphasizes regulatory compliance and offers assurances on the financial statements. The director's report also touches on some key areas like Corporate Social Responsibility, Board Evaluation and Board Remuneration policy. The char

Utkarsh Micro Finance(Core Invest) Unlisted Shares

Utkarsh CoreInvest Limited's (UCL) 32nd Annual Report for FY 2021-22 highlights the company's transformation from an NBFC-MFI to an NBFC-CIC, serving as a promoter and holding company for Utkarsh Small Finance Bank Limited (USFBL). To align with corporate actions, UCL divested 100% of its 78.49% equity stake in Utkarsh Welfare Foundation (UWF), a Section 8 company, making UWF an independent entity from February 25, 2022, and simplifying UCL's structure to a single subsidiary, USFBL. The financial year was characterized by COVID-19's second wave, which presented unprecedented challenges. Vaccination efforts and agile economic responses are helping to avert these challenges. Non-Banking Financial Companies (NBFCs) showed resilience in recovering from cost escalation and liquidity stress. Regulatory measures introduced by the Reserve Bank of India (RBI), such as the Scale Based Regulation Framework for NBFCs, the Fourth Regulatory Sandbox Cohort, the Integrated Ombudsman Scheme 2021, and Governance guidelines, aim to strengthen NBFCs. UCL is prepared for and adhering to regulatory compliances. USFBL's focus on sustainable and responsible banking, particularly in underserved urban and semi-urban areas, has led to a customer base of over 30 lakh, ₹10,228 crore in Assets Under Management, and ₹10,074 crore in Deposits via 686 Banking Outlets and 525 ATMs across 224 Districts in 20 States and 2 Union Territories, served by over 12,000 employees. UCL recorded a total comprehensive income of ₹1.65 crore on a standalone basis and ₹42.21 crore at the consolidated level, following Ind-AS. Consolidated net advances stood at ₹9,943.41 crore and total deposits at ₹10,392.48 crore as of the financial year's end. Standalone net worth was ₹841.29 crore, while consolidated net worth reached ₹1,316.29 crore. USFBL posted a Net Profit of ₹61.46 crore, with Gross Non-Performing Assets at 6.10% and Net Non-Performing Assets at 2.31%. Despite pandemic-related challenges, growth reached ₹20,302 crore, a 29% increase, indicating a positive trajectory. The Board of Directors includes G. S. Sundararajan (Independent Director & Chairperson), Atul (Independent Director), Aditya Deepak Parekh and Gaurav Malhotra (Nominee Directors), and Ashwani Kumar (Managing Director & CEO). T. K. Ramesh Ramanathan was appointed as a Nominee Director w.e.f. July 16, 2022. Harjeet Toor was a Nominee Director till June 23, 2022. The company has several board committees, including the Audit Committee, Corporate Social Responsibility Committee, Nomination & Remuneration Committee, Share Allotment Committee, Group Risk Management Committee, and Promoter Dilution Monitoring Committee, each with specific responsibilities. Senior management includes Ashwani Kumar (Managing Director & CEO), Harshit Agrawal (Chief Financial Officer), and Neeraj Kumar Tiwari (Company Secretary & Compliance Officer). The Management Discussion & Analysis is derived from the operations of USFBL. India's economy saw an 8.9% growth in FY 2021-22 compared to a 6.6% contraction in FY 2020-21. The Indian banking industry comprises 12 public sector banks, 22 private sector banks, 44 foreign banks, 43 regional rural banks, 1,484 urban cooperative banks, and 96,000 rural cooperative banks. As of April 22, 2022, bank credit stood at ₹120.87 Lakh Crore, growing by 9.91% y-o-y. Total deposits reached ₹170.61 Lakh Crore, with 9.65% y-o-y growth. CRAR for scheduled commercial banks improved to 16.3% in March 2021 and remained constant till December 2021. SFBs have grown rapidly, with an 8% credit market share as of September 2021 and a 5.6% share in small loans, achieving a 42% CAGR for their loans. SFBs' CASA ratio stood at an average of 24% during FY 2021-22. Key demand drivers include increasing population (India's at 1.37 billion in 2021), rising disposable incomes (Per capita net national income at ₹1,50,326 in FY 2021-22), credit under-penetration (rural credit penetration lower than 10%), increasing demand in construction space (51% y-o-y growth in residential construction sales), and low-cost funds (CASA deposits). The microfinance sector's gross loan portfolio (GLP) reached ₹2.43 Lakh Crore as of September 30, 2021. NBFC-MFIs are the second largest provider of microcredit, holding ₹82,749 Crore of loans. The MSME sector has a total count of 633.88 Lakh MSMEs in the country. USFBL's operations include 686 banking outlets across 22 states and union territories, serving over 3 million customers with 12,617 employees. 27.70% of branches are located in Unbanked Rural Centres (URCs). USFBL offers micro banking and retail loan products to unbanked customers, and liability products such as savings and current accounts. It provides ATM-cum-debit cards, bill payment systems, and third-party products such as insurance and mutual funds. In FY 2021-22, it launched its UPI App. Despite the Delta Variant, the Bank crossed ₹10,000 Crore in gross loan portfolio and deposits, standing at ₹10,630.72 Crore and ₹10,074.18 Crore respectively as of March 31, 2022. Its presence is strong in Bihar and Uttar Pradesh (60.80% of portfolio). USFBL expanded its presence to four states in South India. It operates MSME lending and housing loan verticals across 66 and 44 branches respectively. Apart from branches, USFBL services customers through 525 ATMs. USFBL's total assets grew by 24.11% and crossed ₹15,000 Crore threshold during FY 2021-22. The bank is focusing on building its CASA book. The Bank launched its UPI app during FY 2021-22. USFBL has an array of diversified products, and continue to provide seamless banking experience. The Bank has onboarded more than 5 Lakh deposits account during FY 2021-22, and the total number of depositors to more than 13 Lakh as on March 31, 2022. Alongside, as an improvement in deposit profile, the Bank witnessed a decline in the cost of deposits by 97 bps from 7.89% in FY 2020-21 to 6.92% in FY 2021-22. USFBL provides additional products such as debit cards and locker services to third-party products such as life insurance. In FY 2021-22 the bank partnered with Bharti AXA Life Insurance and other companies. USFBL has upgraded its internet and mobile banking application, and launched UPI services and the BHIM Utkarsh Mobile app. The Bank has partnerships with CMS for deploying offsite ATMs and has taken green pin for all branches. Bank's loan portfolio has grown at a CAGR of 31% over the last three years and stood at ₹10,630.72 Crore as on March 31, 2022. At the backdrop of a seemingly difficult phase of the pandemic hat ravaged the country, the Microfinance business has grown by 15.99% during FY 2021-22 to ₹ 8,002.41 Crore as on March 31, 2022. The Bank offers joint liability group (JLG) Loans, micro banking individual loans (MBIL), and PM SVANidhi Loan Scheme. Regulatory framework for Microfinance Loans, Directions 2022 which is effective from April 1, 2022 is bringing more standardisation in income assessment. The bank has been focusing on growing its non-micro finance lending by offering newer products, including retail assets lending. Retail assets lending vertical offers various products such as Business Loans, LAP, Lease Rental Discounting, Loan for Purchase of Commercial Property (LPCP), Drop Line Overdraft, and Overdraft for Micro and Small Enterprises. Bank's retail assets loan book grew by 55.40% year-on-year to reach ₹825.37 Crore. USFBL has sharpened its focus on catering to the financing needs of self-employed and salaried individuals for affordable housing loans with ticket sizes in the range of ₹2 Lakh to ₹5 Crore. In CV/CE, USFBL offers a CV/CE loan product from 15 branches primarily focussing on retail customers with a ticket size of ₹5 Lakh to ₹2 Crore. The Bank has forayed into gold loan product on a pilot basis in FY 2021-22. The Wholesale lending vertical focuses on catering to SMEs and corporates for their term loans and working capital requirements. The Bank partnered with 10 BCs in the states of Madhya Pradesh, Chhattisgarh, Haryana, Rajasthan, West Bengal, Maharashtra, Andhra Pradesh and Telangana for micro banking and retail assets. The Bank had acquired MSME micro pool of ₹98.91 Crore from two NBFCs in FY 2021-22. USFBL's business strengths include deep understanding of microfinance and a strong rural presence, growing deposits, a diversified distribution network, healthy financial growth, and diversified shareholding at UCL. The bank's strategies include leveraging its extensive franchise, diversifying the retail asset portfolio, growing retail deposits mix, and increasing fee income. The Bank is focusing on building its CASA book, and continues to provide seamless banking experience, offering diversified products, onboarding more than 5 Lakh deposit account during FY 2021-22. USFBL maintains various partnerships and takes the following initiatives: Upgraded internet banking, launched Utkarsh UPI App, brown level ATM, launched green pin for debit cards, and more. The bank has a loan portfolio of ₹10,630.72 Crore. Microfinance lending comprises 75.28% of the gross loan portfolio of the Bank as of March 31, 2022. The Bank has significant experience and track record in micro finance lending specifically in rural and semi-urban locations (including through its promoter company, UCL) which remains one of the key focused business segments for the Bank. The impact of the pandemic in the first half of FY 2021-22 was felt significantly in the micro finance business. With the pandemic receding and the economy pushing itself towards growth, there was a marked improvement in the efficiency of collections as well as ground activities. During FY 2021-22, the Bank's microfinance loan portfolio has grown by 15.99% to ₹ 8,002.41 Crore as of March 31, 2022. The bank offers group loans built on the peer-guarantee loan model and offers loans to street vendors and individuals. Regulatory Framework for Microfinance Loans, Directions 2022 is likely to bring more standardisation in assessment of household income. Bank's non-micro finance loan book comprised MSME & personal loans, housing loans, and other loans. Key lending vertical under the Bank's non-Micro Finance lending are as follows: Retail assets lending vertical and housing loans. The bank is offering CV/ CE loans and gold loans. The Bank also provides term loans and working capital requirements. The bank has expanded into new untapped geographies and initiated the business correspondent model for asset origination. As of March 31, 2022, the Bank had total loan book managed by BC partners of ₹ 224.42 Crore. USFBL strengths include deep understanding of microfinance segment and strong presence in rural and semi-urban areas, fast growing deposits, and diversified distribution. The bank has identified increase share of fee income and capitalise on cross-selling opportunities. The bank focused on increasing use of technology and digital offerings for last mile delivery to customers, through UPI, mobile banking and others. They have a robust data security infrastructure. It provides financial inclusion and priority sector lending, and meets priority sector lending norms. At 84.6% of the loan portfolio, the bank lending has been to the ticket size of less than ₹25,00,000. The resurgence of COVID-19 (COVID 2nd wave) caused a severe healthcare crisis across the Country. Nevertheless, on account of COVID induced negative impact on economic activity and on-ground movement of the Bank witnessed severe stress on collection efficiency / asset quality, profitability and business growth. However, as the COVID impact has receded towards the second half of financial year, the Bank witnessed substantial improvement in collection efficiency and asset quality, profitability and business growth during the last quarter of FY 2021-22. The Bank had acquired an MSME pool of ₹98.91 Crore to meet MSME PSL Shortfall. Loan portfolio (3/31/2022): 10,630.72 Crore Deposits: ₹10,074.18 Crore Gross NPAs: 6.10% Net NPAs: 2.31% CRAR: 21.59% Tier I CRAR: 18.08%

Utkarsh Micro Finance(Core Invest) Unlisted Shares

Utkarsh CoreInvest Limited Annual Report FY 2020-21 Summary Corporate Information: Utkarsh CoreInvest Limited (UCL) has the Corporate Identification No. U65191UP1990PLC045609. The website is www.utkarshcoreinvest.com and the email address is secretarial@utkarshcoreinvest.com. Haribhakti & Co. LLP are the Statutory Auditors and S. N. Ananthasubramanian & Co. are the Secretarial Auditors. The Company Secretary is Mr. Neeraj Kumar Tiwari. The Registrar & Share Transfer Agent is M/s. NSDL Database Management Limited. The registered and corporate office is located at S-24/1-2, Fourth Floor, Mahavir Nagar, Orderly Bazar, Near Mahavir Mandir, Varanasi - 221002, Uttar Pradesh, India. MD & CEO's Review: The year marked the completion of 11 years for Utkarsh. The MasterCard-International Debit Card product was launched by Utkarsh Small Finance Bank Limited (USFBL), the banking subsidiary. The company subsidiaries serving clients and larger society. Vision redefined as most trusted digitized bank, mission to be the preferred financial institution. PRIDE represents core values (Persistence, Responsible, Inclusive, Diligent, Excellence). Bank reaches 29 lakh active customers with ₹8,416 crore gross Assets Under Management and ₹7,508 crore Deposits through 558 Banking Outlets and 210 ATMs. Bank recorded Net Profit of ₹111.82 crore as per IGAAP rules, GNPAs at 3.75% and NNPAs at 1.33%. Recognized as 'One of the Most Trusted Brand of India 20-21' by CNBC TV 18. Total comprehensive income of ₹0.13 crore on standalone basis and ₹8.95 crore at consolidated level. Consolidated net advances were ₹7,925.35 crore, and total deposits were ₹7,740.65 crore. Net-worth as of March 31, 2021: ₹830.50 crore (standalone) and 1,339.62 crore (consolidated). USFBL filed DRHP with SEBI on March 05, 2021, for IPO and proposed an ‘Offer For Sale’ (OFS) to patriciate in IPO of the Bank. Utkarsh Welfare Foundation (UWF) reached out to 2,87,719 beneficiaries during FY 2020-21. Board of Directors: The Board consists of: Mr. G. S. Sundararajan (Non-Executive Independent Director and Chairperson), Mr. Atul (Independent Director), Mr. Aditya Parekh (Nominee Director representing Faering Capital), Mr. Gaurav Malhotra (Nominee Director representing CDC), Mr. Harjeet Toor (Nominee Director representing RBL Bank Limited), and Mr. Ashwani Kumar (Managing Director & CEO). Committees of the Company: The company has Audit Committee of the Board (ACB), Corporate Social Responsibility Committee (CSRC), Nomination & Remuneration Committee (NRC), and Share Allotment Committee (SAC). Senior Management: Mr. Ashwani Kumar is the Managing Director & Chief Operating Officer. Mr. Harshit Agrawal is the Chief Financial Officer. Mr. Neeraj Kumar Tiwari is the Company Secretary & Compliance Officer. Management Discussion & Analysis: Utkarsh CoreInvest Ltd. (UCL) and subsidiaries Utkarsh Small Finance Bank Ltd. (USFBL) and Utkarsh Welfare Foundation (UWF) aligned to strategies and plan of action for the year with vision and mission at the center. Banking subsidiary successfully completed four full years of banking operations on January 22, 2021. New capital infusion to the Bank of ~*240 crore. Shareholding of the Company came down to 89.5% of the Bank (USFBL). For FY 2020-21, the country's GDP contracted by 7.3%. RBI opened special long-term repo operation window for small finance banks (SFB) where banks can borrow funds up to ₹10,000 Crore at repo rate. RBI projected GDP growth for FY 2021-22 at 9.5%. Indian banking industry comprises 12 public sector banks, 21 private sector banks, 11 small finance banks, 44 foreign banks, 43 regional rural banks, and 98,545 cooperative banks. Banks' deposits growth 11.4% during FY 2020-21. RBI: credit growth stood at 5.6% in FY 2020-21. SFBs licenses to 10 players, 8 of the 10 being microfinance players, the other two a local area bank and a Non-Banking Finance Company. The specific mandate assigned to SFBs, is to further the cause of financial inclusion. Market opportunity and credit at affordable rates and customized products key growth drivers for SFBs. Rural segment opportunity, informal credit channels and Geographic diversification supports growth for Small Finance Banks. Availability of capital, better cost management and cross-selling opportunities benefit SFBs. Microfinance sector has proven its resilience and has been able to maintain profitability over a cycle. MSME contributes to India's GDP. MSME total number of registered increased 18.5%. In the FY 2021-22 budget, the government more than doubled the capital outlay for MSMEs to ₹ 15,700 Crore. Real estate undergoes transformation. Banking Institutions, their Functioning and their impact on economic activity. USFBL completed four years on January 22, 2021. The Bank offers MSME and housing loan products through its select General Banking (GB) and Micro-banking branches. Bank gradually expanding its reach. USFBL has a strong and established rural and semi-urban presence, validated by the proportion of its branches present in semi-urban and rural geographies standing at 65.59% as on March 31, 2021. MSME loan book grew by 115.79% year-on-year to reach ₹531.14 Crore. Housing loan portfolio of USFBL increased 156.85% to reach ₹219.59 Crore during FY2021. Bank received refinance of ₹85 Crore from National Housing Bank. Wholesale vertical focuses on SMEs, corporates, financial sector entities for their term loans, working capital. The Business Correspondent (BC) model aids expansion to untapped geographies. Gross loan portfolio of Bank: ₹8,415.66 Crore, and Deposits: ₹7,507.57 Crore as of March 31, 2021. USFBL uses technology to provide transactional ease. USFBL expanded to 15 districts in FY21. 51 new banking outlets opened FY21. Bank offered MSME & Housing Loan through General Banking & Micro-banking branches. USFBL's Strong Rural & Semi-Urban presence 65.59% as of March 31, 2021. JLG products remains focused business segment for Bank. Focus on MSME & Housing. Bank launched Utkarsh Sambal & PM SVANidhi loan scheme for Pandemic economic disruption. Bank plans to extend offerings beyond JLG loans. Deposits up 43.41% YoY, CASA Deposits up 87.78% YoY. Offers Rupay & MasterCard branded debit cards. The management team of USFBL is qualified and experienced and The Bank is well capitalized. Bank is diversifying retail asset portfolio and growing retail deposits. Bank improved its cost-to-income ratio to 55.43% in FY 2020-21. USFBL's Business strategies: diversify retail asset portfolio, increase fee income, focus on retail deposits, increase technology in operations. USFBL offers mix of Demand and time deposit products. Bank launched MasterCard in FY2021. 'DIGI onboarding tab banking'. Utkarsh leverages legacy as NBFC focused on microfinance, specializing in rural & semi-urban customers. It is the Fast-growing deposits with focus on detail deposits. USFBLs BSBDA BSBDA 6,000.00 with a number summing more than 600,000 accounts; PSL achievements 78.17% 75% regulatory requirement Bank's PSL achievement stood at 78.17% during FY 2020-21 . PSL achievement . COVID-19 strategy: The World Health Organisation 2019 novel Coronavirus declared by (COVID-19) to fight the (India Government) declared to the worldwide epidemic of March11, 2020 due to trade disruption; causing COVID-19 by the few sectors of the economic activities