In Q3 FY24, AU Small Finance Bank reported a net interest income (NII) of Rs 1,325 crore, marking a 15 per cent increase, while the net interest margin (NIM) stood at 5.5 per cent. The pre-provisioning profit for the quarter reached Rs 657 crore, reflecting an 18 per cent growth. However, provisions surged by 387.06 per cent YoY to Rs 158.93 crore in Q3 FY24.
The bank witnessed a significant YoY increase in total deposits by 31 per cent, reaching Rs 80,120 crore, and gross advances also grew by 20 per cent to Rs 67,624 crore. Cost of funds improved by 20 basis points QoQ, settling at 6.90 per cent in Q3 FY24. CASA deposits saw a notable YoY jump of 33 per cent to Rs 26,446 crore, with a CASA ratio of 33 per cent in Q3 FY24.
On the asset quality front, gross non-performing assets (NPAs) amounted to Rs 1,339.68 crore as of 31 December 2023, compared to Rs 1,018.85 crore on 31 December 2022. The gross NPA to gross advances ratio stood at 1.98 per cent, up from 1.81 per cent in the same period of the previous year. The net NPA to net advances ratio increased to 0.68 per cent from 0.51 per cent during the same period.
The provisioning coverage ratio (PCR) remained stable at 72 per cent, including technical write-off and floating provision. The capital adequacy ratio (CRAR) was reported at 20.8 per cent, with tier I at 19.6 per cent as of 31 December 2023.
During the quarter, the bank's digital properties, such as "AU 0101," saw an increase in the customer base to 26 lakh from 16.3 lakh in Q2 FY23. Notably, 14 lakh customers actively availed services on a monthly basis. The bank expanded its physical network, reaching 1,049 touchpoints across 21 states and 3 UTs as of 31 December 2023.
Sanjay Agarwal, MD & CEO of AU Small Finance Bank, expressed satisfaction with the performance, highlighting consistent returns to stakeholders and excitement about the proposed merger, which has received approvals from CCI and is awaiting RBI approvals. AU Small Finance Bank is the largest Small Finance Bank in India and a Fortune India 500 Company.