Rajasthan

Net Profit: Au Bank Net Profit Jumps 44% To ₹387cr In Q1 On Higher Advances | Jaipur News

Jaipur: The Pink City-based AU Small Finance Bank on Saturday reported a 44% rise in net profit at Rs 387 crore in the June quarter helped by growth in interest income and higher loan sales.

Total income rose to Rs 2,773 crore from Rs 1,979 crore, while interest income improved to Rs 2,458 crore from Rs 1,820 crore.
Despite Q1 being a seasonally weak quarter for banking, the bank saw growth across its assets and deposits with profitability growing by 44% on an annual basis supported by a strong NII growth of 28%. Net interest income increased by 28% to Rs 1,246 crore from Rs 976 crore in the same quarter a year ago.

The bank’s MD & CEO Sanjay Agarwal said, “AU bank delivered another quarter of consistent performance across parameters with sustainable growth in our assets, deposits, and profitability despite some impact on our margins due to deposit repricing and negative carry from excess liquidity buffers.”
On the credit card front, Agarwal said the book is Rs 1,000 crore across 6 lakh customers and the bank is adding 50,000 new card customers. “We want to make this portfolio really big as there is absolutely no issue with the asset quality here. In fact, I see the book turning profitable from next fiscal,” he said.
Like every other quarter, Agarwal said, the bank has improved the digital adoption by its customers. “45% of our new customer acquisition has been via digital products and channels like ‘AU 0101′, which is among the top-rated banking apps in the country,” he added.
The bank said its advances grew 29% to Rs 63,635 crore, and deposits grew 27% to Rs 69,315 crore of which 35% was Casa and 68% term deposit. The bank’s asset quality showed improvement as gross non-performing assets declined to 1.76% of gross advances at the end of the June quarter from 1.96% a year ago. Similarly, net NPAs or bad loans declined to 0.55% as against 0.56% in the year-ago period. Provision coverage ratio remains at 73% including technical write-off and floating provision, it said. Capital adequacy ratio increased to 21.46% as compared to 19.36% at the end of June 2022.

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