CASA ratio stood at 35% in the quarter ended 30 June 2023 as against 38.8% in the quarter ended 30 June 2022 and 38.4% in the quarter ended 31 March 2023.

Gross advances rose by 29% to Rs 63,635 crore in the quarter ended 30 June 2023 from Rs 49,349 crore in the quarter ended 30 June 2022.

On a sequential basis, the loan book has increased by 8%. Gross advances in the quarter ended 31 March 2023 aggregated to Rs 59,158 crore.

For Q1 FY24, the average cost of funds (COF) was 6.58%, an increase of 29 basis point (bps) over Q4FY23 at 6.29%.

The bank's management stated: “Q1 FY24 saw gradual improvement in inflationary pressures amidst resilient macro-economic indicators. However, the interest rate continues to remain elevated. Amidst this backdrop, Bank delivered consistent performance across business parameters leading to a steady start for the financial year 2023-24.”

The management further stated that it had an LCR of 151% as on March 31, 2023, and thus the focus in Q1 FY24 was to consume this excess liquidity instead of growing high-cost deposits. Accordingly, in June 2023, the Bank reduced its peak deposit rates by 25 basis points across savings and retail term deposits. The retail term deposits still saw a growth of 8% on QoQ basis. However, the CASA deposits de-grew owing to outflow from one large transacting government savings account in normal course of business.

Bank's credit card business has now reached 6 Lakh live credit cards with monthly spend crossing Rs 1,200 crore in June'23. During the quarter, the Bank opened more than 49,000 savings account.

Credit demand remained strong with disbursement sustaining across product segments and the Bank saw an uptick in disbursement yields on a QoQ basis. Asset quality trends continued to be within the range and the Bank has not securitised any assets during the quarter.

AU Small Finance Bank (AU SFB/AU) is a scheduled commercial bank, a Fortune India 500 Company and the largest Small Finance Bank in the country.

The bank reported 22.7% rise in net profit to Rs 424.63 crore on a 31.8% increase in total income to Rs 2,607.91 crore in Q4 FY23 over Q4 FY22.

The scrip declined 1.52% to Rs 765.80 on the BSE.