AU Small Finance Bank on January 24 reported a net profit of Rs 528.45 crore in the October-December quarter of the current financial year. This marks a strong rise of nearly 41 percent from the Rs 375.25 crore net profit reported in the corresponding period of the previous financial year. The net profit however saw a sequential drop of nearly 7.5 percent from the Rs 571.2 crore reported in the previous quarter (Q2).
AU Small Finance Bank's net interest income (NII) jumped nearly 53 percent year-on-year to Rs 2,022.5 crore in Q3. The bank reported a net NPA margin of 0.91 percent in Q3, higher than the 0.75 percent net NPA margin recorded in the previous quarter (Q2). The bank’s gross NPA margin rose to 2.31 percent in Q3 from 1.98 percent in Q2
The bank's total income jumped nearly 49 percent year-over-year to Rs 4,731.89 crore in Q3. It had reported a total income of Rs 3,178.05 crore in Q3 FY 24.
"After seeing some pick-up during festive season, the economic momentum was subdued during the latter part of Q3 but overall environment is relatively better than H1’FY25. Liquidity remained in deficit for most part of Q3 leading to consistent pressure on interest rates and deposit growth. Unsecured advances (esp. MFI) continue to be in a corrective phase across industry," the company said in its press release.
The company said slippages in its microfinance portfolio were higher in Q2 and Q3, and the trend is likely to continue in Q4 as well. "Elevated credit cost in credit card along expected lines as we calibrate our approach and strengthen digital underwriting and risk frameworks to position these businesses for sustainable growth," it added.
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AU Small Finance Bank shares jumped over 2 percent to trade at Rs 594.95 after the results were announced on January 24. The shares are currently trading over 11 percent higher than their 52-week-low record of Rs 534. However, the stock is still over 21 percent down from its 52-week high record of Rs 755. It currently has a market cap of around Rs 44,230 crore, as per data on BSE.
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