Kolkata: AU Small Finance Bank reported a 53% surge in second-quarter net profit to Rs 858 crore from Rs 561 crore in the year-ago period, helped by business expansion and an improvement in asset quality.
The bank's net interest margin—a key profit metric—rose to 5.8% for the quarter from 5.5% in the year-ago period.
AU's gross non-performing assets ratio fell 42 basis points (bps) to 1.99% at the end of September. Provisions fell 25% to Rs 359 crore from Rs 481 crore. The net NPA ratio improved by 7 bps to 0.81%. Annualised credit cost fell by 45 bps to 0.8% from 1.2% a year earlier.
One basis point is one-hundredth of a percentage point.
The bank, which is in the process of transforming itself into a universal lender, saw its pre-provision operating profit grow 28% year-on-year to Rs 1,514 crore in the second quarter from Rs 1,210 crore a year ago. Net interest income rose 32% to Rs 2,820 crore from Rs 2,144 crore a year earlier.
Its gross loan portfolio grew 25% year-on-year to Rs 1.54 lakh crore while total deposits expanded 29% to Rs 1.70 lakh crore. Founded in 1996 as a vehicle financier, AU is now India’s largest small finance bank.
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AU Small Finance Bank Q2 profit jumps 53% to Rs 858 crore
AU's gross non-performing assets ratio fell 42 basis points (bps) to 1.99% at the end of September. This helped in 25% lower provision at Rs 359 crore against Rs 481 crore. Net NPA ratio improved by 7 bps to 0.81%. Annualised credit cost improved by 45 bps to 0.8% from 1.2% over the year.
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- Atmadip Ray
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- The Economic Times
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