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Au Small Finance Bank has reported 37% declined in
net profit at Rs 302.05 crore for the quarter ended December 2021, mainly on
account of higher base. However, the bank has posted healthy 30% growth in net
interest income (NII), while the non-interest income of the bank dipped 60% in
Q3FY2022 due to Rs 480 crore of income from stake sale in Aavas Financiers in
Q3FY2021. The Net Interest Margin (NIM) of the bank improved to 6.30% in
Q3FY2022 compared to 5.60% in the corresponding quarter of previous year.
On business front, the loan book of the bank has
surged 26% to Rs 42023 crore end December 2021, while the bank has continued to
maintain asset quality stable in Q3FY2022. The CASA ratio of the bank has moved
up to 39.0% at end December 2021.
Asset
quality improves: The bank has improved asset
quality in Q3FY2022.
Bank’s Asset quality
continued to improve significantly with GNPA at 2.6% as against 3.2% in the
previous quarter. Net NPA stood at 1.3% of net advances against 1.7% in the
previous quarter
The fresh slippages of loans stood at Rs 249 crore
in Q3FY2022, while the recovery, upgradations and write-off together were
higher at Rs 343 crore.
The Provision Coverage ratio stood at 51.0% at
end December 2021.
Standard Restructured
accounts stood at 3.1% of gross advances. Billing has commenced for 92% of the
restructured advances.
GNPA against the
Restructuring 1.0 loans stood at 19% end December 2021. Given the experience
with the restructured book so far, bank believes that the extant 16% coverage
against the standard restructured loans seems adequate currently.
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Asset Quality
Indicators: AU Small Finance Bank
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|
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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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Dec-20
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Variation
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QoQ
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YTD
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YoY
|
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Gross NPA (Rs Crore)
|
1057.57
|
1151.45
|
1495.94
|
1502.83
|
302.74
|
-8
|
-30
|
249
|
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Net NPA (Rs Crore)
|
520.18
|
591.48
|
765.99
|
755.45
|
72.69
|
-12
|
-31
|
616
|
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% Gross NPA
|
2.60
|
3.16
|
4.31
|
4.25
|
0.99
|
-56
|
-165
|
161
|
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% Net NPA
|
1.29
|
1.65
|
2.26
|
2.18
|
0.24
|
-36
|
-89
|
105
|
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% Provision Coverage
Ratio
|
51.00
|
49.00
|
49.00
|
50.00
|
76.00
|
200
|
100
|
-2500
|
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% CRAR - Basel III
|
19.55
|
21.95
|
23.07
|
23.37
|
18.84
|
-240
|
-382
|
71
|
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Tier I - Basel III %
|
18.20
|
20.50
|
21.60
|
21.50
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16.30
|
-230
|
-330
|
190
|
|
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 26% YoY to Rs 58645 crore end December 2021, The advances increased
26% surge in advances to Rs 42023 crore. Deposits zoomed to Rs 44278 crore end
December 2021 from Rs 29708 crore end December 2019.
Strong loan growth: A
significant improvement in the overall business environment resulted in strong
disbursements for AU Bank. In Q3FY22, fund-based disbursements were up 33% yoy at
Rs 8152 crore as compared to Rs 6115 crore in the same quarter of the previous
year. Disbursements included ECLGS of Rs 48 crore in Q3FY22. Non-fund
disbursements for Q3FY22 were up 55% YoY at Rs 627 crore as compared to Rs 405
crore in the same quarter of the previous year.
Margins
improve: The bank has showed sharp
110 bps YoY decline in cost of funds to 5.90%, while yield on fund decline only
60 bps YoY to 13.70% in Q3FY2022. Thus, the NIM has improved 70 bps YoY to 6.30%.
Branch
expansion: The bank has network of
880 branches and 496 ATM`s, serviced through 25502 employees base end December
2021.
Book
value of the bank stood at Rs
227.1 per share at end December 2021, while the adjusted book value (net of
NNPA and 10% of restructured advances) was Rs 206.0 per share at end December
2021.
Quarterly Performance
NII
surges on strong loan growth: Bank has recorded 19% increase in the interest earned at Rs 1496.45
crore, while interest expenses declined 8% to Rs 676.03 crore in Q3FY2022. NII
improved 30% to Rs 820.42 crore in the quarter ended December 2021.
Healthy growth in the fee
income: The
loan assets processing & other fees surged 41% to Rs 142 crore, followed by
general banking & deposits related fees rising 43% to Rs 40 crore, cross
sell, distribution related fees & others 57% to Rs 11 crore and PSLC premium
/ fees 863% to Rs 77 crore. However, the treasury income declined 75% to Rs 9 crore
in Q3FY2022.
Expenses
ratio rise: The operating expenses
of the bank increased 50% to Rs 637.63 crore, as other expenses moved up 53% to
Rs 281.75 crore, while employee expenses jumped 48% to Rs 355.88 crore in
Q3FY2022. Cost to income ratio increased to 58.2% in Q3FY2022 compared with 32.1%
in Q3FY2021, causing the Operating Profit to decline 49% to Rs 458.43 crore.
Provisions
and contingencies declines:
The bank has showed 82% dip in provisions to Rs 55.97 crore. NPA provisions were
reversed amounting to Rs 29 crore, while write off stood at Rs 39 crore and repossession
loss Rs 34.00 crore.
Effective tax rate rose to 25.0% in Q3FY2022
from 18.7% in Q3FY2021. Net Profit declined 37% YoY to Rs 302.05 crore during
quarter ended December 2021.
Financial Performance 9MFY2022:
Bank has posted 22% decline in net profit to Rs 783.76
crore in nine months ended December 2021 (9MFY2022). The net interest income
increased 34% to Rs 2297.57 crore, while non-interest income declined 42% to Rs
682.32 crore. Net total income rose 3% to Rs 2979.89 crore in 9MFY2022.
The operating expenses increased 50% to Rs 1647.17
crore, while provision and contingencies declined 49% to Rs 267.75 crore. Profit
before tax to declined 16% to Rs 1064.97 crore in 9MFY2022. The cost-to-income
ratio rose to 55.3% in 9MFY2022 compared to 38.1% in 9MFY2021. An effective tax
rate increased to 26.4% in 9MFY2022 compared to 20.7% in MFY2021. The net
profit has declined 22% to Rs 783.76 crore in 9MFY2022.
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AU Small Finance Bank:
Results
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Particulars
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2112 (3)
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2012 (3)
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Var %
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2112 (9)
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2012 (9)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Interest Earned
|
1496.45
|
1261.12
|
19
|
4254.70
|
3657.68
|
16
|
4950.05
|
4285.88
|
15
|
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Interest Expended
|
676.03
|
627.99
|
8
|
1957.13
|
1948.07
|
0
|
2584.61
|
2376.94
|
9
|
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Net Interest Income
|
820.42
|
633.13
|
30
|
2297.57
|
1709.61
|
34
|
2365.44
|
1908.94
|
24
|
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Other Income
|
275.64
|
685.61
|
-60
|
682.32
|
1173.77
|
-42
|
1451.55
|
706.09
|
106
|
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Net Total Income
|
1096.06
|
1318.74
|
-17
|
2979.89
|
2883.38
|
3
|
3816.99
|
2615.03
|
46
|
|
Operating Expenses
|
637.63
|
423.69
|
50
|
1647.17
|
1099.77
|
50
|
1658.42
|
1417.86
|
17
|
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Operating Profits
|
458.43
|
895.05
|
-49
|
1332.72
|
1783.62
|
-25
|
2158.57
|
1197.17
|
80
|
|
Provisions &
Contingencies
|
55.97
|
305.82
|
-82
|
267.75
|
521.14
|
-49
|
700.06
|
283.20
|
147
|
|
Profit Before Tax
|
402.46
|
589.23
|
-32
|
1064.97
|
1262.48
|
-16
|
1458.51
|
913.97
|
60
|
|
Provisions for Tax
|
100.42
|
110.21
|
-9
|
281.20
|
260.77
|
8
|
287.82
|
239.19
|
20
|
|
Net Profit
|
302.05
|
479.02
|
-37
|
783.76
|
1001.71
|
-22
|
1170.69
|
674.78
|
73
|
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EPS*(Rs)
|
38.5
|
61.1
|
|
33.3
|
42.6
|
|
37.3
|
21.5
|
|
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* Annualized on current
equity of Rs 313.77 crore. Face Value: Rs 10, Figures in Rs crore,
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Source: Capitaline
Corporate Database
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