AU Small Finance Bank tumbles nearly 10% in two days

AU Small Finance Bank hit a lower circuit of 5% at Rs 490.75, extending losses for second day.

Shares of the private bank have lost 9.73% in two sessions from its recent closing high of Rs 543.70 recorded on 30 April 2020. The stock tumbled 4.99% to Rs 516.55 on Monday (4 May) after the bank reported weak Q4 results on Saturday, 2 May 2020.

AU Small Finance bank's net profit rose 3.46% to Rs 122.32 crore in Q4 March 2020 as against net profit of Rs 118.23 crore in Q4 March 2019. Total income rose 35.6% to Rs 1366.59 crore in Q4 March 2020 over Q4 March 2019.

Provisions and contingencies surged 283% to Rs 150.57 crore in Q4 March 2020 over Q4 March 2019. The bank created a COVID-19 provisioning of Rs 138 crore in Q4 March 2020 other than Standard Asset NPA and NPA provisioning.

The bank's gross non-performing assets (NPAs) stood at Rs 457.78 crore as on 31 March 2020 as against Rs 503.99 crore as on 31 December 2019 and Rs 470.13 crore as on 31 March 2019.

The ratio of gross NPAs to gross advances stood at 1.68% as on 31 March 2020 as against 1.88% as on 31 December 2019 and 2.04% as on 31 March 2019. The ratio of net NPAs to net advances stood at 0.81% as on 31 March 2020 as against 1.01% as on 31 December 2019 and 1.29% as on 31 March 2019.

Net Interest Income (NII) grew 43% year-on-year (YoY) to Rs 555 crore during Q4 March 2020 from Rs 387 crore in Q4 March 2019. Capital adequacy ratio stood at 21.99% in Q4 March 2020, up from 19.31% reported in the same period last year.

AU Small Finance Bank operates as a commercial bank. The bank offers financial products and services such as savings and current accounts, term deposits, debit cards, insurance, government banking, retail loans, and microfinance lending.

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