AU Small Finance Bank on January 28 reported a 36.9 percent year-on-year (YoY) drop in its net profit at Rs 302 crore for the third quarter of the financial year 2021-22 (Q3FY22). On a sequential basis, the profit, however, rose 11.2 percent.
Net interest income (NII) for the period rose 29.5 percent on-year to Rs 820.4 crore.
The lender's gross non-performing assets (GNPAs) ratio came in at 2.6 percent as against 0.99 percent a year earlier. In the previous quarter, it stood at 3.2 percent. Net NPA was 1.29 percent against 1.65 percent in the September quarter and 0.24 percent in the corresponding quarter of the previous fiscal.
"In Q3'FY22, we saw continued improvement in the operating environment and borrower cashflows. These factors along with the secured nature of our loan book led to significant asset quality improvement in the quarter, along with continued improvement across all other key focus areas. These include improving granularity of our deposit base, healthy asset growth driven by small-ticket secured loans, increasing adoption of our digital properties following the launch of our super app AU 0101, QR codes and credit card offerings, and improved visibility and brand recall following our brand campaign," said Sanjay Agarwal, MD & CEO, AU Small Finance Bank.