AU Small Finance Bank Q2 Report: 17% Rise In Net Profit To Rs 402 Crore

AU Small Finance Bank reported a net profit of Rs 401.8 crore in the second quarter of fiscal year 2023-24 (Q2FY24), marking a 17.3 per cent increase from the Rs 343 crore recorded in the same period the previous year.

The private sector bank's net interest income (NII) for the September 2023 quarter stood at Rs 1,249 crore, reflecting a significant 15.3 per cent growth compared to the Rs 1,083.4 crore reported in the corresponding period of the previous fiscal.

AU Small Finance Bank exhibited an improvement in its gross non-performing asset (NPA) ratio, which declined to 1.76 per cent in Q2FY24, down from 1.91 per cent in the previous quarter. However, the net NPA ratio increased to 0.60 per cent in the second quarter, up from 0.55 per cent in the June 2023 quarter.

The bank's total deposits surpassed the Rs 75,000 crore mark, marking a 30 per cent annual growth and a 9 per cent sequential increase, as stated in a press release. Current account saving account (CASA) deposits increased by 6 per cent during the quarter, reaching Rs 25,666 crore, with a CASA ratio of 34 per cent.

In the September 2023 quarter, the bank acquired a total of 3.65 lakh new customers, with 45 per cent of them being onboarded through digital products and channels, the bank reported.

Sanjay Agarwal, MD & CEO of AU Small Finance Bank, commented, "Our performance in Q2FY24 was resilient and sustainable with growth across deposits, digital, and advances. This resilience is further complemented by the positive outlook in AU markets, where there are promising prospects for growth and market penetration. Our key strategic focus is on building low-cost retail deposits, even in the current environment of elevated costs and intense competition."

In the last trading session on 27 October, the bank's stock closed at Rs 692.40 on the BSE, marking a 0.84 per cent increase from the previous day's closing price.