|
Au Small Finance Bank has reported 148% growth in net profit at Rs 190.32 crore for the quarter ended June 2019. The bank has posted healthy 38% growth in net interest income (NII), while the non-interest income of the bank also improved 105% in Q1FY2020. The bank divested 0.8% equity out of 7.2% equity stake in Aavas Financiers in Q1FY2020 contributing pre-tax other income of Rs 77 crore and boosted overall growth in the net profit of the bank in Q1FY2019.
On business front, the AUM of the bank has surged 44% to Rs 25610 crore end June 2019, while the bank has continued to maintain asset quality stable in Q1FY2020.
However, the CASA ratio of the bank eased to 19.0% at end June 2019. The Net Interest Margin (NIM) of the bank declined to 4.80% in Q1FY2020 compared to 5.80% in the corresponding quarter of previous year.
Asset quality continues to be stable: The bank has maintained stable asset quality in Q1FY2020.
- The fresh slippages of loans stood at Rs 140 crore in Q1FY2020, while the recovery, upgradations and write-off together were higher at Rs 124 crore.
- The Provision Coverage ratio stood at 40.5% at end June 2019.
- The risk weighted assets of the bank have increased 48% to Rs 19515 crore end June 2019.
| Asset Quality Indicators: AU Small Finance Bank |
|
Jun-19 |
Mar-19 |
Dec-18 |
Sep-18 |
Jun-18 |
Variation |
| QoQ |
YoY |
| Gross NPA (Rs Crore) |
485.70 |
470.14 |
420.73 |
371.04 |
333.50 |
3 |
46 |
| Net NPA (Rs Crore) |
289.00 |
294.50 |
262.65 |
231.56 |
210.64 |
-2 |
37 |
| % Gross NPA |
2.08 |
2.04 |
2.09 |
2.03 |
2.17 |
4 |
-9 |
| % Net NPA |
1.25 |
1.29 |
1.31 |
1.28 |
1.38 |
-4 |
-13 |
| % Provision Coverage Ratio |
40.5 |
37.4 |
37.6 |
37.6 |
36.8 |
310 |
370 |
| % CRAR - Basel III |
18.6 |
19.3 |
19.0 |
17.8 |
20.7 |
-70 |
-210 |
| Tier I - Basel III % |
15.5 |
16.0 |
15.5 |
17.2 |
20.1 |
-50 |
-460 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore |
Business Highlights:
Business growth continues to strong: The total assets of the bank have surged 61% YoY to Rs 33762 crore end June 2019. The advances surged 44% surge in advances to Rs 25610 crore. Deposits and borrowings surged 71% to Rs 28856 crore at end June 2019. Deposits zoomed to Rs 19849 crore end June 2019 from Rs 9999 crore end June 2018.
Strong loan growth: Advances growth was driven by retail loans rising 49% YoY to Rs 20121 crore at end June 2019, while small and mid corporate loans have jumped 36% to Rs 5189 crore at end June 2019.
Margins declines: The cost of funds for the bank was steady on YoY basis at 7.90%, while yield on fund declined 10 bps YoY to 14.50% in Q1FY2020. The NIM has dipped 100 bps YoY to 4.80%.
Branch expansion: The bank has network of 418 branches and 554 ATM's, serviced through 12788 employees base end June 2019.
Book value of the bank stood at Rs 113.3 per share at end June 2019, while the adjusted book value (net of NNPA) was Rs 103.4 per share at end June 2019.
Quarterly Performance
NII surges on strong loan growth: Bank has recorded 59% increase in the interest earned at Rs 957.39 crore, while interest expenses declined 79% to Rs 561.82 crore in Q1FY2020. NII improved 38% to Rs 395.57 crore in the quarter ended June 2019.
Healthy growth in the non-interest income: Bank has posted strong 105% growth in non-interest income to Rs 211 crore in the quarter ended June 2019. The loan assets processing & other fees surged 46% to Rs 67 crore, followed by general banking & deposits related fees rising 70% to Rs 17 crore and income from sale of MT & other assets jumping 29-times to Rs 29 crore. However, the cross sell, distribution related fees & others declined 77% to Rs 7 crore and bad debt recovery dipped 33% to Rs 4 crore, while PSLC premium / fees was flat at Rs 10 crore in Q1FY2020.
Stable expenses ratio: The operating expenses of the bank increased 33% to Rs 315.68 crore, as other expenses moved up 34% to Rs 129.78 crore, while employee expenses increased 32% to Rs 185.89 crore in Q1FY2020.
Cost to income ratio declined on strong income growth to 52.0% in Q1FY2020 compared with 60.9% in Q1FY2019, allowing the Operating Profit to increase 91% to Rs 290.84 crore.
Provisions and contingencies declines: The bank has showed 10% decline in provisions to Rs 31.51 crore. NPA provisions declined 5% to Rs 21.00 crore, while write off was nil and repossession loss stood at Rs 7 crore in Q1FY2020.
Effective tax rate declined to 26.6% in Q1FY2020 from 34.5% in Q1FY2019. Net Profit jumped 148% YoY to Rs 190.32 crore during quarter ended June 2019.
Annual Financial Performance:
Bank has posted 31% increase in net profit to Rs 381.81 crore for the year ended March 2019. The net interest income increased 43% to Rs 1342.48 crore, while non-interest income moved up 19% to Rs 462.03 crore, pushing up net total income by 36% to Rs 1804.51 crore in FY2019. The operating expenses increased 44% to Rs 1082.61 crore, while provision and contingencies rose 7% to Rs 141.78 crore, allowing profit before tax to increase 31% to Rs 580.13 crore in FY2019. The cost-to-income ratio increased to 60.0% in FY2019 compared to 56.7% in FY2018. An effective tax rate was steady at 34.2% in FY2019 compared to 34.1% in FY2018. The net profit has increased 31% to Rs 381.81 crore in FY2019.
|