In the midst of Fitch Ratings downgrading the Nifty and the Sensex plunging by about 1000 points, Utkarsh Small Finance Bank was a shining star, listing for nearly double the offer price.. ET Insights spoke with Govind Singh, Managing Director, and Chief Executive Officer of Utkarsh Small Finance Bank to understand how his organisation scaled new heights.
You are currently the buzz in the market since your listing is at 45+, rising to 50+ levels – almost 100 percent more than the issue price. Can you discuss the positivity that the market is relying on?
Our dedication for the past 14 years, along with commitment and passion, has helped us build a solid foundation. It is the hard work of the 15000+ people of the Utkarsh family. This helped us establish a rapport with people and expand our customer base. Our idea was to price it (face value of shares) attractively so that we could rope in retail investors and our employees alike. As a result, we had two subscriptions in just 25 minutes. Employee trust stands as our most valuable asset.
You achieved a market capitalisation of Rs. 2,740 crore, now reaching approximately Rs. 5500 crores as per NSE. What is your differentiating mantra and the vision forward?
We began our journey with four branches and have steadily progressed due to our unwavering commitment to our customers—we’re always there for them. We consider it crucial for us to create value for our investors too. We have been marching forward due to technology and our demographics, which have been our greatest advantages. Whether our customers are from Mumbai or the hinterlands of UP, they receive the same customer service. The digital infrastructure in these regions, developed by the Indian government over the years, is benefiting us. My dream and vision are that there should be no differentiation between a customer in Mumbai and a customer in the hinterlands. That is how our institution has differentiated itself.
From a microfinancier, to a NBFC, to a bank, and then, with this bumper listing, you have paved the way for future NBFCs. Can you shed some light on its future?
Our range of services has expanded, and this IPO has facilitated our progress. We plan to march forward with our customary dedication and offer high-quality service as always.
Can you provide examples of success stories where the bank has made a significant impact on customers’ lives?
We are fundamentally a microfinance company, and women have been our primary beneficiaries, growing alongside us. We take immense pride in their (women’s) advancement. Additionally, we have a foundation involved in initiatives such as healthcare, education, and skill development. I have personally involved myself in these endeavours, and I still meet people who have been with us since our inception. For instance, someone who borrowed Rs. 10,000 in 2009 is still with us more than a decade later, now operating at a much larger scale. Women’s empowerment and inclusion are activities that have given credence to our organisation, and we will continue to prioritise them.