Home > Business > AU Small Finance Bank Q1 net up 32pc YoY to Rs 268 cr

AU Small Finance Bank Q1 net up 32pc YoY to Rs 268 cr


MUMBAI, JULY 20, 2022

AU Small Finance Bank’s net profit rose 32 per cent year on year (YoY) to Rs 268 crore in the quarter ended June (Q1FY23), on the back of improvement in its net interest income. The bank had posted a net profit of Rs 203 crore during the same period last year (Q1FY22). Sequentially, its net profit fell by 23 per cent from Rs 346 crore in Q4FY22.

The lender’s total income stood at Rs 1,979 crore, up 26 per cent YoY, while the net interest income (NII) was up 35 per cent in Q1FY23 to Rs 976 crore from Rs 924 crore in Q1FY22.

The bank’s asset quality profile improved with gross non-performing assets (GNPAs) declining to 1.96 per cent in June 2022 from 4.31 per cent till the year-ago quarter. Net NPAs dipped to 0.56 per cent during the quarter from 2.26 per cent a year ago.

The provision coverage ratio rose to 72 per cent for the quarter under review from 49 per cent a year ago.

The bank’s assets under management grew 37 per cent YoY to Rs 50,161 crore at the end of June 2022.

Its deposits grew by 48 per cent YoY to Rs 54,631 crore in June 2022 from Rs 37,014 crore, with further improvement in CASA ratio to 39 per cent compared to 26 per cent a year ago.

In Q1’FY23, fund-based disbursements were up 345 per cent YoY at Rs 8,445 crore as compared to Rs 1,897 crore in the same quarter of the previous year which had a low base due to Covid 2.0. Non-fund disbursements for Q1’FY23 were up five-fold at Rs 481 crore s compared to Rs 79 crore in the same quarter of the previous fiscal because of Covid 2.0.

The Bank witnessed a growth of 37 per cent YoY in its AUM (asset under management) to Rs 50,161 crore from Rs 36,635 crore.

Commenting on the performance, AU Small Finance Bank MD & CEO Sanjay Agarwal said, “Q1FY23 was one of the best Q1 for us in the last several years as we saw healthy performance across key parameters – improvement in CASA ratio and retail deposits mix, reduction in our GNPA ratio supported by collections remaining north of 100 per cent, growth in each of the asset business, stable spreads and asset quality, and overall healthy profitability.”

“We are expanding our distribution and continue to invest in digital initiatives, branding and distribution to capture the significant opportunities available to us and be future ready. We made our debut in north-east this quarter and have been getting good acceptance in the newer markets of South India and East India,” he added.

Speaking about the future prospect, Agarwal said, “With good monsoon and expected support from festive season in second half of the year, we remain cautiously optimistic for the year as a whole.”

About admin

Leave a Reply

Your email address will not be published. Required fields are marked *