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AU Small Finance Bank on Thursday reported a 30% year-on-year increase in its net profit to Rs 393 crore for the December quarter. This is the highest-ever quarterly profit, the lender said.
The jump in the profit is on account of a 41% Y-o-Y decline in its provisions to Rs 33 crore. The bank‘s pre-provisioning operating profit was up 21% to Rs 556 crore on back of an increase in non-interest income, which was at Rs 295 crore, higher by 7% YoY.
The bank’s net interest income improved 41% to Rs 1,153 crore while the net interest margin dropped 10 basis points to 6.20%.
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The lender saw a 14-bps increase in cost of funds to 6% which will remain a key monitorable going ahead, it said. Deposits grew 38% YoY to Rs 61,101 crore as of December 31. The current account, savings account (CASA) ratio dropped to 38%, against 42% a quarter ago. The improvement in NII was on account of growth in the loan book, which improved 38% to Rs 56,335 crore.
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The bank’s asset quality improved, with gross non performing asset (NPA) ratio declining 9 bps sequentially to 1.81% as on December 31 while net NPA was stable at 0.51%. The capital adequacy ratio stood at 20% as of December 31, against 18.2% a year ago.
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