Utkarsh Small Finance Bank to Meet on Equity Share Issue, Utkarsh Small Finance Bank is set to hold an important meeting on February 26 to discuss a proposal for the issuance of equity shares. The bank's board will also consider the process of seeking shareholder approval through an extraordinary general meeting or postal ballot. This follows a period of financial challenges for the bank, including a significant net loss in the third quarter.
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| Utkarsh Small Finance Bank to Meet on Equity Share Issue |
The Varanasi-based bank previously entered the equity market in July 2023, raising ₹500 crore by issuing 20 crore equity shares. While the move helped raise funds, the bank faced financial difficulties, with a net loss of ₹168 crore reported for Q3 2024, down from a net profit of ₹116 crore in the same period last year.
Utkarsh Small Finance Bank to Seek Approval for Equity Share Issuance:
- Utkarsh Small Finance Bank plans to issue equity shares.
- Board meeting scheduled for February 26 to discuss proposal.
- Bank posted a net loss of ₹168 crore in Q3 2024.
- Non-performing loans rose to ₹1,177 crore by December-end.
- Shareholder approval will be sought through an extraordinary meeting.
Utkarsh Small Finance Bank Plans to Issue Equity Shares Soon, Utkarsh Small Finance Bank is looking to raise more funds through the issuance of equity shares to help address its financial situation. The bank’s decision to seek shareholder approval shows its commitment to transparency and involving stakeholders in key decisions. However, the financial losses in Q3 and the rise in non-performing loans are challenges that the bank must work through.
The upcoming board meeting and subsequent shareholder vote will be crucial in determining the bank's next steps for recovery and growth. As the bank navigates these financial hurdles, investors and customers will be keeping a close eye on its future moves.
