AU Small Finance Bank posted a 30 per cent rise in its Q3 profit after tax to Rs 393 crore—the highest ever quarterly profit. Sequentially, the net profit was 15 per cent higher.
Gross advances grew by 38.4 per cent on a low base to ₹56,335 crore as of December 31, of which 90 per cent were retail loans and 93 per cent of the loans were secured.
“Despite the challenging environment around inflation and liquidity, we were able to maintain margins, deliver growth in loan market share, improve asset quality, and focus on productivity while achieving our highest ever quarterly profits,” said MD and CEO Sanjay Agarwal.
Net interest income (NII) for the quarter was up 41 per cent YoY and 6 per cent QoQ at ₹1,153 crore. The net interest margin (NIM) for the quarter was 6.2 per cent.
Gross NPA
The gross NPA ratio of the bank improved to 1.81 per cent as of December from 1.90 per cent a quarter ago and 2.60 per cent a year ago. The net NPA ratio of 0.51 per cent was also better than the 0.56 per cent recorded in the previous quarter and 1.29 per cent in the previous year.
Deposits were up 38 per cent on year to Rs 61,101 crore, led by a 35 per cent growth in low-cost CASA deposits, which accounted for 38 per cent of total deposits at the end of December.
The capital adequacy ratio of the bank was at 22.0 per cent, of which tier-I capital was at 20.0 per cent.