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Au Small Finance Bank has reported 105% surge in
net profit at Rs 346.09 crore for the quarter ended March 2022. The bank has
posted healthy 43% growth in net interest income (NII), while the non-interest
income of the bank also improved 13% in Q4FY2022.
The Net Interest Margin (NIM) of the bank
improved to 6.30% in Q4FY2022 compared to 5.70% in the corresponding quarter of
previous year.
On business front, the loan book of the bank has
surged 27% to Rs 47831 crore end March 2022, while the bank has continued to improve
asset quality in Q4FY2022. The CASA ratio of the bank has eased to 37.0% at end
March 2022.
Asset
quality improves: The bank has improved asset
quality in Q4FY2022.
The fresh slippages of loans stood at Rs 195
crore in Q4FY2022, while the recovery, upgradations and write-off together were
higher at Rs 329 crore.
Asset quality improved
further – GNPA now below 2% at 1.98% against 2.60% qoq. Net NPA reduced to
0.50% from 1.29% qoq.
Average
Collection efficiency in FY22 at 106%
Standard
Restructured accounts stood at 2.5% of gross advances versus 3.1% end December
2021. As on 31 March 2022, Billing has commenced for 98% of the restructured advances.
GNPA
against the Restructuring 1.0 advances stood at 16% end March 2021.
Given
the experience with the restructured book so far, the bank believes that the
extant 16% coverage against the standard restructured loans seems adequate
currently
Bank had created contingency
provisions of Rs 300 crore for unforeseen risks on business arising out of the
impact of COVID-19 pandemic
On the remaining contingency
provisions of Rs 157 crore, the bank would further decide in the coming
quarters basis evolving market conditions
Additionally, the Bank has created a
floating provision of Rs 41 crore from the current quarter P&L – this will
further strengthen the balance sheet, acting as a counter-cyclical buffer, to
be utilised with prior approval of RBI.
The Provision Coverage ratio stood at 75.0% at
end March 2022 from 50% end March 2021.
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Asset Quality
Indicators: AU Small Finance Bank
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Mar-22
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Dec-21
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Sep-21
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Jun-21
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Mar-21
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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924.38
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1057.57
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1151.45
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1495.94
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1502.83
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-13
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-38
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Net NPA (Rs Crore)
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230.85
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520.18
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591.48
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765.99
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755.45
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-56
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-69
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% Gross NPA
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1.98
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2.60
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3.16
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4.31
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4.25
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-62
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-227
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% Net NPA
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0.50
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1.29
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1.65
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2.26
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2.18
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-79
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-168
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% Provision Coverage
Ratio
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75.00
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51.00
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49.00
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49.00
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50.00
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2400
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2500
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% CRAR - Basel III
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20.99
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19.55
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21.95
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23.07
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23.37
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144
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-238
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Tier I - Basel III %
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19.70
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18.20
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20.50
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21.60
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21.50
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150
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-180
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business
Highlights:
Healthy
business growth: The total assets of the
bank have surged 34% YoY to Rs 69078 crore end March 2022, The advances galloped
27% surge in advances to Rs 47831 crore. Deposits surged to Rs 52585 crore end
March 2022 from Rs 35979 crore end March 2021.
Strong loan growth: The disbursement stood at Rs 10295
crore in Q4FY202, which is highest ever quarterly achievement – growth of 26%
qoq and 44% yoy. AUM grew 27% yoy to Rs 47831 crore. Disbursements (fund-based) increased 44% yoy to Rs 25407
crore in FY2022. Non-fund disbursements for FY22 were up 81% yoy at Rs 1872
crore as compared to Rs 1033 crore in FY21.
Casa at 37%: Deposits crossed Rs 50000 crore and stood at
Rs 52585 crore end March 2022 rising 46% yoy and 19% qoq. Granularity
of deposits continued to improve driven by increasing brand awareness, branch
expansion and improved digital offerings. CASA deposits grew by 137% yoy
and 13% qoq. CASA ratio stood at 37% end March 2022 from 23% end March 2021.
Certificate
of Deposit (CD) outstanding end March 2022 at Rs 1506 crore as against CD book
of Rs 1647 crore end March 2021.
Deposits
at 90% of external funding (borrowings + deposits) end March 2022 versus 84% end
March 2021
Margins
improve: The bank has showed sharp
-90 bps YoY decline in cost of funds to 5.90%, while yield on fund decline only
-40 bps YoY to 13.70% in Q4FY2022. Thus, the NIM has improved 60 bps YoY to
6.30%.
Branch
expansion: The bank has network of
919 branches and 514 ATM`s , serviced
through 27817 employees base end March 2022.
Book
value of the bank stood at Rs
237.3 per share at end March 2022, while the adjusted book value (net of NNPA
and 10% of restructured advances) was Rs 226.3 per share at end March 2022.
The Board of Directors has
recommended issuance of bonus shares in the ratio of 1:1 The Board has further
recommended a dividend of Rs 1 per share (pre-bonus issue) for FY22.
Quarterly Performance
NII
surges on strong loan growth: Bank has recorded 29% increase in the interest earned at Rs
1667.04 crore, while interest expenses moved up 15% to Rs 730.47 crore in
Q4FY2022. NII improved 43% to Rs 936.57 crore in the quarter ended March 2022.
Healthy
growth in the non-interest income: Bank has posted strong 13% growth in non-interest income to Rs
311 crore in the quarter ended March 2022.
Expenses
ratio rises: The operating expenses
of the bank increased 37% to Rs 765.61 crore, as other expenses moved up 59% to
Rs 351.94 crore, while employee expenses fell 23% to Rs 413.67 crore in
Q4FY2022. Cost to income ratio rose to 61.3% in Q4FY2022 compared with 59.9% in
Q4FY2021, allowing the Operating Profit to increase 29% to Rs 482.33 crore.
Provisions
and contingencies declines: The bank has showed -48% dip in provisions to Rs 93.22 crore. NPA
provisions were written back amounting to Rs 30.00 crore, while Write off stood
at Rs 23 crore and repossession loss Rs 36.00 crore.
Effective tax rate declined to 11.1% in Q4FY2022
from 13.8% in Q4FY2021. Net Profit rose by 105% YoY to Rs 346.09 crore during
quarter ended March 2022.
Financial Performance FY2022:
Bank has posted -3% decline in net profit to Rs
1129.83 crore in year ended March 2022 (FY2022). The net interest income
increased 37% to Rs 3234.12 crore, while non-interest income dipped -30% to Rs
993.69 crore, pushing up net total income by 12% to Rs 4227.81 crore in FY2022.
The operating expenses increased 45% to Rs 2412.77 crore, while provision and
contingencies declined -46% to Rs 360.97 crore. PBT was flat at Rs 1454.07
crore in FY2022. The cost-to-income ratio increased to 57.1% in FY2022 compared
to 43.8% in FY2021. An effective tax rate rose to 22.3% in FY2022 compared to
19.7% in FY2021. The net profit has declined -3% to Rs 1129.83 crore in FY2022.
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AU Small Finance Bank:
Results
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Particulars
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2203 (3)
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2103 (3)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Interest Earned
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1667.04
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1292.37
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29
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5921.73
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4950.05
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20
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Interest Expended
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730.47
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636.54
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15
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2687.61
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2584.61
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4
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Net Interest Income
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936.57
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655.83
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43
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3234.12
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2365.44
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37
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Other Income
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311.37
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276.65
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13
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993.69
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1420.93
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-30
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Net Total Income
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1247.94
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932.48
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34
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4227.81
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3786.37
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12
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Operating Expenses
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765.61
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558.67
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37
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2412.77
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1658.42
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45
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Operating Profits
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482.33
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373.81
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29
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1815.04
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2127.95
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-15
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Provisions &
Contingencies
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93.22
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177.78
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-48
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360.97
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669.44
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-46
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Profit Before Tax
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389.11
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196.03
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98
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1454.07
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1458.51
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0
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Provisions for Tax
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43.03
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27.06
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59
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324.24
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287.82
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13
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Net Profit
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346.09
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168.98
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105
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1129.83
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1170.69
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-3
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EPS*(Rs)
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44.0
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21.5
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35.9
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37.2
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* Annualized on
current equity of Rs 314.9 crore. Face Value: Rs 10, Figures in Rs crore,
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Source: Capitaline
Corporate Database
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