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AU Small Finance Bank Profit Soars 53% on Strong Loan Growth
24 Oct
Summary
- Net profit rose 53% year-on-year to ₹857.7 crore in the September quarter.
- Net interest income increased 31.5% to ₹2,820.1 crore, fueled by loan growth.
- Deposits surged 29%, outpacing sector growth, while loan portfolio grew 25%.
AU Small Finance Bank reported a significant 53% year-on-year increase in net profit for the September quarter, amounting to ₹857.7 crore. This performance exceeded the ₹561 crore profit recorded in the same quarter of the previous year.
The bank's net interest income saw a substantial rise of 31.5%, reaching ₹2,820.1 crore, up from ₹2,144.4 crore year-on-year. This growth was primarily driven by strong loan expansion and improvements in its net interest margin, which increased by 33 basis points to 5.8%.
Asset quality showed improvement, with the gross non-performing assets (NPA) ratio decreasing to 1.99% from 2.10% in the prior quarter. Provisions for the quarter also decreased to ₹359.4 crore, aided by better performance in the unsecured loan book.
Deposits grew by an impressive 29% year-on-year, reaching approximately ₹1.70 lakh crore, significantly outpacing the estimated 18% sector growth. Concurrently, the gross loan portfolio expanded by 25% year-on-year to ₹1.54 lakh crore, against an estimated 19% growth for the banking sector.
