Net Interest Income (NII) during the quarter jumped by 35% YoY to Rs 976 crore, aided by broadly stable spreads and AUM growth of 37% YoY. Net Interest Margin (NIM) stood at 5.9% in Q1 FY23.

Operating profit of the bank declined 18.1% YoY to Rs 394.07 crore in Q1 FY23.

Provisions & Contingencies aggregated to Rs 38.37 crore in the first quarter, down 81.4% YoY.

Profit before tax in Q1 FY23 stood at Rs 355.70 crore, up by 29.5% from Rs 274.66 crore in Q1 FY22.

Gross NPAs amounted to Rs 970 crore in Q1 FY23 as against Rs 1,496 crore in Q1 FY22 and Rs 924 crore in Q1 FY22.

Gross NPA as a percentage of gross advances was 1.96% in Q1 FY23 as against 4.31% in Q1 FY22 and 1.98% in Q4 FY22.

Net NPA as a percentage of gross advances was 0.56% in Q1 FY23 as against 2.26% in Q1 FY22 and 0.50% in Q4 FY22.

Provision coverage ratio (PCR) was at 72% as on 30 June 2022 as against 49% as on 30 June 2021. Including technical write-offs, the PCR was at 74%.

Apart from provision of Rs 654 crore against GNPA pool, the bank has, additionally, maintained a provision against restructured book at Rs 170 crore (16% of restructured book), a contingency provision of Rs 144 crore (0.30% of advances), a floating provision of Rs 41 crore (0.08% of advances) and a standard provisions of Rs 147 crore (0.30% of advances).

The bank's deposits grew by 48% YoY to Rs 54,631 crore and the loan AUM grew by 37% YoY to Rs 50,161 crore in Q1 FY23.

The bank's total CRAR was at 19.4% against minimum requirement 15% and Tier-I capital ratio of 18.4% against minimum requirement 7.5% as on 30 June 2022.

Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, "I am very happy with the progress we have made as a Bank in the last 21 quarters despite working in an unusually challenging environment. Our business model is becoming increasingly sustainable with each passing quarter driven by our retail-focused branch banking franchise, well positioned asset verticals with consistently resilient asset quality, traction in our digital initiatives, and continued focus on high governance standards.

The macro-economic environment and geo-political challenges have kept inflation levels elevated and interest rates are hardening. While these impact costs, our endeavor remains on maintaining our return ratios. With good monsoon and expected support from festive season in second half of the year, we remain cautiously optimistic for the year as a whole.”

AU Small Finance Bank (AU Bank) is a scheduled commercial bank. As on 30th June 2022, the bank has established operations across 953 banking touchpoints.