AU Small Finance Bank reported a 49 per cent year-on-year (yoy) growth in deposits and 44 per cent yoy growth in gross advances in the second quarter of FY23.
As at September-end 2022, deposits and gross advances stood at ₹58,335 crore and ₹52,452 crore, respectively, as per the Bank’s provisional business updates.
The proportion of low-cost current account, savings account (CASA) deposits improved to 42 per cent as at September-end 2022 against 30 per cent as at September-end 2021.
During the second quarter, incremental cost of funds rose to 6.1 per cent (5.7 per cent in the preceding quarter), respectively.
Disbursements
Fund-based disbursements in the reporting quarter were up about 68 per cent yoy at ₹8,605 crore (₹5,135 crore in the year ago quarter).
“The increase in disbursement yield during the first half of FY23 has well-compensated for the rise in incremental cost of funds.
“As retail demand in the system accelerates, the Bank is prioritising risk adjusted yields and focus is on sustainable growth underpinned by strong underwriting,” as per the update.