|
Au Small
Finance Bank has reported 1% growth in net profit at Rs 203.20 crore for the
quarter ended June 2021. The bank has posted healthy 40% growth in net interest
income (NII), while the non-interest income of the bank declined 18% in
Q1FY2022. The Net Interest Margin (NIM) of the bank improved to 6.00% in
Q1FY2022 compared to 4.80% in the corresponding quarter of previous year.
On
business front, the loan book of the bank has increased 22% to Rs 36635 crore
end June 2021, while the bank has continued to maintain asset quality stable in
Q1FY2022. CASA ratio of the bank has moved up to 26.0% at end June 2021.
Asset quality stable: The bank
has maintained stable asset quality in Q1FY2022.
The fresh
slippages of loans stood at Rs 250 crore in Q1FY2022, while the recovery,
upgradations and write-off together were higher at Rs 257 crore.
The
Provision Coverage ratio stood at 49.0% at end June 2021.
Asset quality remained stable with
GNPA at 4.3% and Net NPA at 2.3%.
Collections saw sharp pullback as
Covid wave-2 flattened; Collection efficiency of 114% in June 2021 and 101% for
Q1FY22.
Bank prudently made contingency
provisions of Rs 120 crore during the quarter to strengthen the balance sheet;
The Bank now carries total contingency provision of Rs 190 crore which is 0.6%
of loans
Bank has done 658 crore of standard
restructuring in Q1 and total Standard Restructured asset book doubled to Rs 1265
crore which is 3.60% of gross advances
Bank remains well capitalised with a
strong Tier 1 capital ratio of 21.6% and total CRAR of 23.1% (sufficiently
above minimum requirement of 7.5% and 15% respectively)
Commenting
on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, “Q1’FY22 caught most of us by surprise with
the onset of second wave. Amidst a challenging operating environment, our
performance has been quite resilient and we remain thankful to the Government, regulators,
customers and last but not the least our employees for their belief and
support. Our deposits continue to become more granular, our digital journey is
shaping up well, our GNPL was stable sequentially and we have strengthened our
balance sheet by creating contingency buffers for any unforeseen risks to our
business. We are quite excited about the recent launch of our Digital Banking
app AU 0101, our newest asset product in Credit Cards and our Video Banking
solutions. We will shortly be going live with our Brand campaign as we continue
in our efforts to bring Badlaav”
|
Asset Quality
Indicators: AU Small Finance Bank
|
|
|
Jun-21
|
Mar-21
|
Dec-20
|
Sep-20
|
Jun-20
|
Variation
|
|
QoQ
|
YoY
|
|
Gross NPA (Rs Crore)
|
1495.94
|
1502.83
|
302.74
|
423.17
|
447.12
|
0
|
235
|
|
Net NPA (Rs Crore)
|
765.99
|
755.45
|
72.69
|
122.83
|
163.19
|
1
|
369
|
|
% Gross NPA
|
4.31
|
4.25
|
0.99
|
1.54
|
1.69
|
6
|
262
|
|
% Net NPA
|
2.26
|
2.18
|
0.24
|
0.45
|
0.62
|
8
|
164
|
|
% Provision Coverage
Ratio
|
49.00
|
50.00
|
76.00
|
71.10
|
63.70
|
-100
|
-1470
|
|
% CRAR - Basel III
|
23.10
|
23.37
|
18.84
|
21.47
|
21.72
|
-27
|
138
|
|
Tier I - Basel III %
|
21.60
|
21.50
|
16.30
|
18.30
|
18.50
|
10
|
310
|
|
Variation in basis points
for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Steady business growth: The
total assets of the bank have surged 16% YoY to Rs 51357 crore end June 2021. The
advances surged 22% surge in advances to Rs 36635 crore. Deposits zoomed to Rs 37014
crore end June 2021 from Rs 26734 crore end December 2019.
Total deposits grew by 38% YoY to Rs 37,014
crore driven largely by growth in Savings account balances which grew 166% YoY
to Rs 8,102 crores. CASA ratio improved to 26% versus 23% end March 2021 and
14% end June 2020. Retail deposits mix was at 59%.
Total Loan AUM increased 22% YoY to
reach Rs 36635 crore. Disbursements were subdued in Q1FY22 due to the 2nd wave
impact.
Margins improve: The bank
has showed sharp 90 bps YoY decline in cost of funds to 6.30%, while
yield on fund decline only 60 bps YoY to 14.00% in Q1FY2022. Thus, the NIM has
improved 120 bps YoY to 6.00% .
Branch expansion: The bank
has network of 742 branches and 440 ATM`s, serviced through 23486 employees
base end June 2021.
Book value of the bank stood at Rs 217.4
per share at end June 2021, while the adjusted book value (net of NNPA and 10%
of restructured advances) was Rs 188.9 per share at end June 2021.
Quarterly
Performance
NII rises on higher margins: Bank has
recorded 14% increase in the interest earned at Rs 1353.49 crore, while
interest expenses declined 6% to Rs 629.48 crore in Q1FY2022. NII improved 40% to
Rs 724.01 crore in the quarter ended June 2021.
Fee income rises, treasury income dips: Bank has
posted 18% decline in non-interest income to Rs 184 crore in the quarter ended
June 2021. The fee income increased 113% on low base to Rs 83 crore, butt treasury
income dipped 36% to Rs 101 crore, leading to decline in non-interest income.
Expenses ratio jumps: The
operating expenses of the bank increased 54% to Rs 456.96 crore, as other
expenses moved up 49% to Rs 174.34 crore, while employee expenses also jumped 58%
to Rs 282.62 crore in Q1FY2022. Cost to income ratio jumped to 50.3% in
Q1FY2022 compared with 39.9% in Q1FY2021, allowing the Operating Profit to
increase only 1% to Rs 451.24 crore.
Provisions and contingencies decline: The bank
has showed 3% decline in provisions to Rs 176.59 crore. NPA provisions declined
28% to Rs 132.00 crore, while repossession loss was Rs 6.00 crore.
Effective
tax rate rose to 26.0% in Q1FY2022 from 24.0% in Q1FY2021. Net Profit rose by 1%
YoY to Rs 203.20 crore during quarter ended June 2021.
Financial Performance FY2021:
Bank has posted 73% increase in net profit to Rs
1170.69 crore in nine months ended March 2021 (FY2021). The net interest income
increased 24% to Rs 2365.44 crore, while non-interest income moved up 106% to
Rs 1451.55 crore, pushing up net total income by 46% to Rs 3816.99 crore in
FY2021. The operating expenses increased 17% to Rs 1658.42 crore, while
provision and contingencies galloped 147% to Rs 700.06 crore, allowing profit
before tax to increase 60% to Rs 1458.51 crore in FY2021. The cost-to-income
ratio improved to 43.4% in FY2021 compared to 54.2% in FY2020. An effective tax
rate declined to 19.7% in FY2021 compared to 26.2% in FY2020. The net profit
has increased 73% to Rs 1170.69 crore in FY2021.
|
AU Small Finance Bank:
Results
|
|
Particulars
|
2106 (3)
|
2006 (3)
|
Var %
|
2103 (12)
|
2003 (12)
|
Var %
|
|
Interest Earned
|
1353.49
|
1184.12
|
14
|
4950.05
|
4285.88
|
15
|
|
Interest Expended
|
629.48
|
668.26
|
-6
|
2584.61
|
2376.94
|
9
|
|
Net Interest Income
|
724.01
|
515.86
|
40
|
2365.44
|
1908.94
|
24
|
|
Other Income
|
184.19
|
225.80
|
-18
|
1451.55
|
706.09
|
106
|
|
Net Total Income
|
908.20
|
741.66
|
22
|
3816.99
|
2615.03
|
46
|
|
Operating Expenses
|
456.96
|
296.06
|
54
|
1658.42
|
1417.86
|
17
|
|
Operating Profits
|
451.24
|
445.60
|
1
|
2158.57
|
1197.17
|
80
|
|
Provisions &
Contingencies
|
176.59
|
181.25
|
-3
|
700.06
|
283.20
|
147
|
|
Profit Before Tax
|
274.65
|
264.35
|
4
|
1458.51
|
913.97
|
60
|
|
Provisions for Tax
|
71.46
|
63.53
|
12
|
287.82
|
239.19
|
20
|
|
Net Profit
|
203.20
|
200.81
|
1
|
1170.69
|
674.78
|
73
|
|
EPS*(Rs)
|
26.0
|
25.7
|
|
37.4
|
21.6
|
|
|
* Annualized on
current equity of Rs 312.94 crore. Face Value: Rs 10, Figures in Rs crore,
|
|
Source: Capitaline
Corporate Database
|
|