AU SFB Q1 net profit jumps 44% to Rs 387 cr, net interest income rises 28%

AU Small Finance Bank on Saturday reported a 44 per cent rise in net profit at Rs 387 crore in the June quarter helped by growth in interest income.

The Jaipur-based lender had posted a net profit of Rs 268 crore in the year-ago period.

Total income in the first quarter of the current fiscal rose to Rs 2,773 crore from Rs 1,979 crore in the same period a year ago, AU Small Finance Bank said in a regulatory filing.

Interest earned by the bank improved to Rs 2,458 crore over Rs 1,820 crore in June 2022.

Net interest income (NII) increased by 28 per cent to Rs 1,246 crore from Rs 976 crore in the same quarter a year ago.

However, the net interest margin declined to 5.7 per cent as compared to 5.9 per cent in the same period a year ago.

Despite Q1 being a seasonally weak quarter for banking, the bank saw growth across its assets and deposits with profitability growing by 44 per cent on an annual basis supported by a strong NII growth of 28 per cent.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 1.76 per cent of gross advances at the end of the June quarter from 1.96 per cent a year ago.

Similarly, net NPAs or bad loans declined to 0.55 per cent as against 0.56 per cent in the year-ago period. Provision coverage ratio remains at 73 per cent including technical write-off and floating provision, it said.

Capital Adequacy Ratio of the bank increased to 21.46 per cent as compared to 19.36 per cent at the end of June 2022.