Utkarsh Small Finance Bank Limited, formerly known as Utkarsh Micro Finance Private Limited, is an Indian scheduled commercial bank licensed by the Reserve Bank of India under the Banking Regulation Act, 1949. The Bank was included in the Second Schedule to Reserve Bank of India Act, 1934 vide RBI Notification dated October 4, 2017, followed by a Gazette Notification published on November 7, 2017
Incorporated in 2009 as a microfinance institution, the Bank is headquartered at Varanasi, Uttar Pradesh.The microlender, as of 2013, had its operation in north India in 29 districts of Uttar Pradesh, Bihar, Madhya Pradesh, Uttarakhand, Delhi and Himachal Pradesh with 123 branches and around 285,000 active clients.
The full banking services of the Bank were launched by the Honourable Prime Minister of India on September 22, 2017.[As of 2017, the Bank had its operations in UP, Bihar, Jharkhand, Chhattisgarh, Madhya Pradesh and some portions of Haryana and Uttarakhand., Utkarsh Small Finance Bank Limited, as of 2019, has annual revenue of Rs 939.1 crore, Net Profit of Rs 93.9 Crore and a Total Equity of Rs 772.8 Crore.
Over the years, the Bank has attracted investors like Commonwealth Development Corporation, Norwegian Microfinance Initiative (NMI),HDFC Ergo General Insurance, HDFC Standard Life, ICICI Prudential Life Insurance, RBL Bank Ltd., Shriram Life Insurance, Small Industries Development Bank of India (SIDBI) and private equity funds such as Arpwood Investments, Faering Capital, Aavishkaar Goodwell and Lok Capital
To provide affordable & accessible banking services which are process centric, technology enabled and people oriented resulting in reliable, scalable and sustainable institution facilitating socioeconomic change. To be the trusted financial service provider to over 10 million customers by 2021.
It’s an investment programme funded by shareholders and is professionally managed and traded in diversified holdings, thus minimising the market risk. These primarily invest in shares. Based on the objective, investments could be in growth stocks, where earnings growth is expected to be high or value stocks. Here the view of the fund manager is that current valuations in the markets do not reflect the intrinsic value. This scheme generally invests funds in fixed-income securities, mainly in government securities and corporate bonds, with various maturities.
The investor earns returns from interest income on its investments and profits on trading securities. These funds are comparatively less risky. Balanced schemes invest in a mix of equity and debt. The debt investments ensure a basic interest income, which the fund manager hopes to top with a capital gain from the investment in equities. However loses can eat into basic interest income and capital. MIPs aim to provide consistency in returns by investing a major part of the portfolio in debt market instruments with a small investment in equities. Thus, these funds are more suited for investors who along with protection of capital seek some capital appreciation. However, the monthly income is not assured. ELSS is an open-ended equity growth scheme that is offered by Mutual Funds in line with existing ELSS guidelines. The investments are subject to a lock-in period of 3 years and, as per the Finance Act 2005, are allowed the benefit of income deduction up to Rs. 1,50,000. This scheme offers the benefits of tax saving and capital gains. Instead of spreading your investments across different instruments such as PPF, ELSS, NSC and infrastructure bonds, you can now invest the entire limit of Rs. 1,50,000 available under Sec 80(C) in ELSS. An SIP is a convenient way to accumulate wealth in a disciplined manner for a long-term. It helps you to invest regularly in small Installments and thereby build wealth over a period of time. This plan is best for young people looking for investment plans.