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AU Small Finance Bank reported a 32 per cent year-on-year (yoy) increase in first quarter net profit at ₹268 crore on the back of robust rise in net interest income and sharp decline in provisions and contingencies.
The Jaipur-headquartered bank had reported a net profit of ₹203 crore in the year ago quarter. Net profit in the reporting quarter (Q1FY23), however, was lower vis-a-vis preceding quarter’s ₹346 crore.
Net interest income (difference between interest earned and interest expended) was up 35 yoy to ₹976 crore (₹724 crore in the year ago quarter).
Other income, comprising processing fee, profit/ loss on sale of investments (including provision for depreciation), recovery from loans written off, income from dealing in PSLC, etc.,declined 26 per cent yoy to ₹159 crore (₹215 crore).
Operating expenses jumped 62 per cent yoy to ₹741 crore (₹457 crore).
Provisions (other than tax) & contingencies declined 81 per cent yoy to ₹38 crore (₹207 crore).
Gross non-performing assets/GNPAs improved a tad to 1.96 per cent of gross advances against as at June-end 2022 against 1.98 per cent as at March-end 2022. However, net NPAs increased to 0.56 per cent against 0.50 per cent. Collection efficiency averaged 105 per cent for Q1FY23.
Net interest margin was a tad lower at 5.9 per cent (6 per cent).
Advances were up by 43 per cent yoy to ₹48,654 crore. The bank said disbursements (fund-based) for Q1FY23 were at ₹8,445 crore, up 345 per cent yoy due to low base. Similarly, non-fund disbursements at ₹481 crore, were up 509 per cent yoy due to low base.
Total deposits rose by 48 per cent yoy to ₹54,631 crore, with the proportion of low cost current account, savings account (CASA) deposits improving to 39 per cent of total deposits (26 per cent).
Total Capital to Risk-weighted Assets Ratio (CRAR) was at 19.4 per cent against minimum requirement 15 per cent,
Sanjay Agarwal, MD & CEO,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.”
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