|
AU Small Finance Bank has reported 23% growth in net profit at Rs
424.62 crore for the quarter ended March 2023 (Q4FY2023). The bank has posted
healthy 30% growth in net interest income (NII), while the core fee income of
the bank rose at moderate pace 5% in Q4FY2023. The Net Interest Margin (NIM) of
the bank eased to 6.10% in Q4FY2023 compared to 6.30% in the corresponding
quarter of previous year.
On business front, the bank as has posted 29%
growth in business with strong 26% surge in loan book. The asset quality of the
bank has improved in Q4FY2023. Bank has witnessed reduction in credit to
deposit ratio to 85.3% at end March 2023 from 89.0% at end March 2022. However,
the CASA ratio of the bank has increased to 38.4% at end March 2023 from 37.3%
at end March 2022.
Asset quality improves: The bank has further improved asset quality in Q4FY2023.
Bank’s Asset quality
improved significantly with GNPA at 1.66% in March 2023 down from 1.98% in
March 2022. Net NPA dipped to 0.42% of net advances from 0.50%.
The fresh slippages of loans stood at Rs 191
crore in Q4FY2023 compared with 231 crore in previous quarter and Rs 195 crore
in the corresponding quarter last year. The recoveries and upgradations of NPAs
were at Rs 229 crore.
The standard restructured loan book of the bank
net of provisions declined to Rs 584 crore end March 2023.
Provision coverage ratio was steady at 75.00% at
end March 2023 compared to 75.00% a quarter ago and 75.00% a year ago.
The capital adequacy ratio of the bank stood at
23.6% with Tier I ratio at 21.8% at end March 2023.
|
Asset Quality
Indicators: AU Small Finance Bank
|
|
|
Mar-23
|
Dec-22
|
Sep-22
|
Jun-22
|
Mar-22
|
Variation
|
|
QoQ
|
YoY
|
|
Gross NPA (Rs Crore)
|
981.31
|
1018.86
|
996.70
|
969.62
|
924.38
|
-4
|
6
|
|
Net NPA (Rs Crore)
|
245.16
|
284.56
|
288.22
|
274.83
|
230.85
|
-14
|
6
|
|
% Gross NPA
|
1.66
|
1.81
|
1.90
|
1.96
|
1.98
|
-15
|
-32
|
|
% Net NPA
|
0.42
|
0.51
|
0.56
|
0.56
|
0.50
|
-9
|
-8
|
|
% PCR
|
75.00
|
75.00
|
74.00
|
72.00
|
75.00
|
0
|
0
|
|
% CRAR - Basel III
|
23.59
|
21.97
|
23.36
|
19.36
|
20.99
|
162
|
260
|
|
% CRAR - Tier I -
Basel III
|
21.80
|
20.00
|
21.30
|
18.40
|
19.70
|
180
|
210
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth: The business of the bank has increased 29% YoY
to Rs 128523 crore end March 2023, driven by 26% surge in advances to Rs 59158
crore. Deposits zoomed 32% to Rs 69365 crore at end March 2023.
CASA deposits ratio improves: The CASA deposits of the bank surged 36% YoY to
Rs 26660 crore at end March 2023. The CASA ratio improved to 38.4% at end March
2023 compared to 37.3% at end March 2022, while remained steady from 38.4% a
quarter ago.
Investment
book of the bank jumped 31%
YoY to Rs 20072 crore at end March 2023.
Margins ease: The bank has showed 59 bps YoY jump in cost of deposits to 6.29%,
while yield on advances were steady at YoY at 13.40% in Q4FY2023. Thus, the NIM
has declined 20 bps YoY to 6.10%.
Branch expansion: The bank has added 12 branches and 4 ATMs in Q4FY2023,
taking overall tally to 1027 branches and 493 ATM`s end March 2023.
Book value of the bank stood at Rs 164.4 per share at end March 2023, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs
159.9 per share at end March 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 36% increase in the interest
earned at Rs 2274.85 crore, while interest expenses increased 45% to Rs 1061.65
crore in Q4FY2023. NII improved 30% to Rs 1213.20 crore in the quarter ended
March 2023.
Moderate growth in the core fee income: Bank has posted 5% growth in core fee income to
Rs 332 crore, while the treasury income stood at Rs 1 crore, leading to 7% rise
in the overall non-interest income to Rs 333.06 crore in the quarter ended
March 2023.
Expenses ratio rises: The operating expenses of the bank increased 27%
to Rs 975.35 crore, as other expenses moved up 40% to Rs 492.83 crore, while
employee expenses increased 17% to Rs 482.52 crore in Q4FY2023. Cost to income
ratio increased to 63.1% in Q4FY2023 compared with 61.4% in Q4FY2022. Operating
Profit increased 18% to Rs 570.91 crore.
Provisions and contingencies decline: The bank has showed 56% decline in provisions to
Rs 40.88 crore. The loan loss provisions declined 75% to Rs 46 crore, while the
bank has written back standard asset provisions of Rs 4 crore in Q4FY2023.
Effective tax rate rose to 19.9% in Q4FY2023 from 11.1% in Q4FY2022. Net
Profit rose by 23% YoY to Rs 424.62 crore during quarter ended March 2023.
Financial Performance FY2023:
Bank has posted 26% increase in net profit to Rs
1427.92 crore in the year ended March 2023 (FY2023). The net interest income
increased 37% to Rs 4425.28 crore, while non-interest income moved up 4% to Rs
1034.46 crore, pushing up net total income by 29% to Rs 5459.74 crore in
FY2023. The operating expenses increased 43% to Rs 3440.27 crore, while
provision and contingencies dipped 57% to Rs 154.84 crore, allowing profit
before tax to increase 28% to Rs 1864.63 crore in FY2023. The cost-to-income ratio
deteriorated to 63.0% in FY2023 compared to 57.1% in FY2022. An effective tax
rate rose to 23.4% in FY2023 compared to 22.3% in FY2022. The net profit has
increased 26% to Rs 1427.92 crore in FY2023.
|
AU Small Finance Bank: Results
|
|
Particulars
|
2303 (3)
|
2203 (3)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
|
Interest Earned
|
2274.85
|
1667.03
|
36
|
8205.41
|
5921.73
|
39
|
|
Interest Expended
|
1061.65
|
730.47
|
45
|
3780.13
|
2687.61
|
41
|
|
Net Interest Income
|
1213.20
|
936.56
|
30
|
4425.28
|
3234.12
|
37
|
|
Other Income
|
333.06
|
311.37
|
7
|
1034.46
|
993.69
|
4
|
|
Net Total Income
|
1546.26
|
1247.93
|
24
|
5459.74
|
4227.81
|
29
|
|
Operating Expenses
|
975.35
|
765.61
|
27
|
3440.27
|
2412.77
|
43
|
|
Operating Profits
|
570.91
|
482.32
|
18
|
2019.47
|
1815.04
|
11
|
|
Provisions &
Contingencies
|
40.88
|
93.22
|
-56
|
154.84
|
360.97
|
-57
|
|
Profit Before Tax
|
530.03
|
389.10
|
36
|
1864.63
|
1454.07
|
28
|
|
Provision for tax
|
105.41
|
43.03
|
145
|
436.71
|
324.24
|
35
|
|
PAT
|
424.62
|
346.07
|
23
|
1427.92
|
1129.83
|
26
|
|
EPS*(Rs)
|
25.5
|
20.8
|
|
21.4
|
17.0
|
|
|
Adj BV (Rs)
|
159.9
|
113.2
|
|
159.9
|
113.2
|
|
|
* Annualized on current equity of
Rs 665.75 crore. Face Value: Rs 10, Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|