AU Small Finance Bank: 20% Advance Growth, 31% Surge in Deposits in Q3

5 Jan 2024 , 12:09 PM

AU Small Finance Bank reveals a 20% YoY growth in advances and a substantial 31% increase in deposit mobilization as of December.

The bank’s advance portfolio reaches Rs 67,624 crore, and gross deposits stand at Rs 80,120 crore, solidifying its position as the largest small finance bank.

To diversify funding and optimize costs, the bank securitizes a loan portfolio of Rs 2,738 crore during the quarter, as per provisional quarterly data submitted to stock exchanges.

Amidst a challenging macro environment marked by tight liquidity, higher interest rates, and intense deposit competition, the bank exercises caution and prudence in its operations.

The current and savings account ratio to total deposits sees a decline, falling to 33% at the end of December from 38.4% a year ago, indicating a shift of deposits from savings accounts to term deposits.

The average cost of funds for the quarter rises by 20 basis points QoQ to 6.90%, posing potential pressure on the bank’s net interest margin.

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