Utkarsh Micro Finance Ltd is the promoting institution for 'Utkarsh Small Finance Bank'. Utkarsh Micro Finance Ltd has started its operations way back in September 2009 to provide financial and non-financial services in its area of operations to the unbanked population who have the skill but are in need of capital. The Micro Finance business was converted into a Small Finance Bank which started his journey with its incorporation on April 30, 2016. Today, Utkarsh Micro Finance Bank is the holding company of the Utkarsh Small Finance Bank. As on 31.03.2020, Utkarsh Small Finance Bank has a loan book of 6281 Cr, NIM of 11.59%, and Book value of 13.42. PAT for the year was 186 Cr which was doubled as compared to the previous year. As per the news published in Financial Express, the bank has raised 195 Cr as Tier-II capital. What are Tier I and II Capital? As per RBI regulations, every bank has to maintain certain capital in the ratio of risk-weighted assets to handle the obligations of the banks and to prevent banks from going insolvent. That ratio is called as Capital Adequacy Ratio (CAR). Tier-I capital consists of shareholders' equity and retained earnings. It is the primary source of funds for banks. Tier-II - capital is said to be subordinate capitals. CAR = Tier-I or Tier-II Capital/Risk-weighted Assets Effect on CAR? This capital raising exercise will increase the CAR by almost 3%. Click here to know more about the Utkarsh Small Finance Bank.