AU Small Finance Bank Q1 net profit jumps 37% to Rs 796 crore
Kolkata: AU Small Finance Bank on Saturday reported a 37% jump in first quarter net profit at Rs 796 crore over Rs 581 crore in
Kolkata: AU Small Finance Bank on Saturday reported a 37% jump in first quarter net profit at Rs 796 crore over Rs 581 crore in the year ago period, backed by improved asset quality, normalisation of unsecured loans and healthy business growth.The Jaipur-headquartered lender, which is in a transition into a universal bank, also announced the elevation of chief operating officer Yogesh Jain to deputy chief executive officer to strengthen the leadership bandwidth.Its pre-provision operating profit rose 9% year-on-year at Rs 1435 crore, supported by a 32% surge in net interest income at Rs 2695 crore while a 97% fall in treasury earnings pulled other income down by 15% at Rs 689 crore.The net interest margin for the quarter stood at 5.9%, improved by 47 basis points from what it was in the year-ago period.
The key ratio however moderated 7 bps quarter-on-quarter.The bank's operating expenses increased 26% year-on-year at Rs 1949 crore, which the bank attributed to higher business volumes and investment in distribution, manpower, branding and technology.Gross non-performing assets ratio improved to
2.1% as on June 30 from2.5% a year prior, backed by a 22% decline in fresh slippages at Rs 798 crore.. The provision for the quarter came down 30% to Rs 372 crore from Rs 533 crore, led by
normalisation of unsecured business, the bank said.Its gross loan portfolio grew 23% year-on-year to Rs 1.44 lakh crore with secured business growth at 25% outpacing the unsecured loan expansion of 11%. Total deposits grew by 24% to Rs 1.58 crore.
The BriefWire