Utkarsh Small Finance Bank gets Sebi’s approval to float IPO

October 27, 2022

Utkarsh Small Finance Bank has entered capital requests controller Sebi’s go ahead to raise Rs 500- crore through an original Public Offering (IPO). The Varanasi- headquartered Small Finance Bank’s (SFB) IPO is a complete fresh issue of shares and the entire proceeds will go to the lender, according to Draft Red Herring Prospectus (DRHP).

The lender may consider issue of securities adding up up to Rs 100 crore in a pre-IPO placement round. However, the fresh issue size will be reduced, if similar placement is accepted. The SFB, which filed fresh draft papers with Sebi in August, attained its observation letter on October 21, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday. In Sebi’s parlance, carrying its observation letter implies the requests watchdog’s blessing to launch the IPO.

Going by the draft papers, proceeds from the fresh issue will be utilised to compound the lender’s league 1 capital base to meet unborn capital conditions. Incorporated in 2016, Utkarsh commenced operations in 2017 and its product suite includes a range of deposit products, including saving accounts, payment accounts, current accounts, recreating and fixed deposits and locker installations.

As on March 2022, its operations are spread across 22 countries and Union homes with 686 banking outlets and 12,617 workers serving 3.14 million guests majorly located in pastoral and semi civic areas primarily in the countries of Bihar, Uttar Pradesh and Jharkhand. Its gross loan portfolio grew from Rs 6,660.95 crore as of March 31, 2020 to Rs 10,630.72 crore as of March 31, 2022, while the total deposits nearly doubled from Rs 5,235.21 crore to Rs 10,074.18 crore during the same period.

Before in March 2021, Utkarsh had filed draft papers with Sebi to raise Rs1,350 crore through the IPO. It was seeking allocation of fresh shares amounting to Rs 750 crore and an offer for trade of over to Rs 600 crore. The lender had entered Sebi’s go ahead to float the IPO in June last time but didn’t launch the original share- trade. In August this time, it refiled the draft papers but reduced the IPO size. ICICI Securities NSE 1.17% and Kotak Mahindra NSE 1.09% Capital Company are the book running lead directors to the issue.

About Utkarsh Small Finance Bank

Utkarsh Small Finance Bank is a proud solitary Small Finance Bank from Varanasi. Established in 2009 with the charge to empower the low- income group financially, it has reached to new heights moment. The ideal of our bank is’ Ummeed’- giving stopgap to guests for fulfilling their dreams and requirements. Over the times, we’ve extended our services to 112 sections of 11States.


Moment we boast a client Base of further than 15 Lakh satisfied guests with 400 Banking Outlets. In moment’s time where technology is reshaping the world, we aim to encourage people barred from the formal banking sector until now to start banking with our affordable and accessible banking services.

Our focus is to give services that are process centric, technology enabled and people acquainted performing in dependable, scalable and sustainable institution easing socioeconomic change. We also have an action called Utkarsh Welfare Foundation which works in the areas of fiscal knowledge and Addition piecemeal from Health enterprise.

Our sweats have been conceded with Skoch (Gold)-2016 Award for Inclusive Insurance, CIMSME’s MSME Banking Excellence Award, Mix STAR (Socially Transparent And Responsible) Award and Microfinance India Organisation of the Time( Small and Medium order) Award in 2011. To help come the most trusted fiscal service provider, our honourable Prime Minister Narendra Modi launched Full Banking Services on 22nd September 2017.

Vision & Mission

To be the most trusted, digitized bank that is financially and socially inclusive, and creates value across social strata through insightful and viable solutions.

Be the preferred financial institution across all customer segments through technology enabled solutions that are sustainable, inclusive, and scalable, supported by a work culture that centers on passion, values and corporate ethics to deliver best in class customer experience.

Core values

Persistence is our innate quality

Responsible and Ethical in our dealings

Inclusive in our approach

Diligent in our process

Excellence in all that we do