AU Small Finance Bank's Q1FY23 net profit grew by a whopping 32% yoy at Rs268 crore

21 Jul 2022 , 03:31 PM

AU Small Finance Bank reported a 32% yoy increase in net profit for the June quarter to Rs 268 crore, as compared to Rs203 crore in the previous corresponding quarter. This growth in profit is owing to higher net interest income and a sharp drop in provisions.

AU SFB reported a marginal decrease in quarterly net interest margin to 5.9% from 6% in the same quarter the previous year. However, net interest income during Q1FY23 witnessed a growth of 35% yoy at Rs976 crore as compared to Rs924 crore in Q1FY22.

The bank reported an improvement in its asset quality, with the Gross NPA ratio falling to 1.96% at the end of June against 4.3% in the previous corresponding quarter.

Net NPAs witnessed a decline of 1.70% at 0.56% in Q1FY23 against 2.26% in the same quarter previous year. Further, company’s provision coverage ratio jumped to 72% in the quarter under review as against 49% in Q1FY22.

The bank also announced that the board of directors has approved a Rs3,000 crore fund raise plan via issue of equity shares.

Bank’s AUM registered a growth of 37% yoy at Rs50,161 crore while deposits increased by 48% to Rs54,631 crore.

AU Small Finance Bank’s counter ended at Rs588.40 up by 2.02% from its previous closing of Rs576.75 on the BSE.