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AU Small Finance Bank has reported 23% growth in net profit at Rs 342.60
crore for the quarter ended September 2022 (Q2FY2023). The bank has posted
healthy 44% growth in net interest income (NII), while the core fee income of
the bank also improved 32% in Q2FY2023. The Net Interest Margin (NIM) of the
bank improved to 6.20% in Q2FY2023 compared to 6.10% in the corresponding
quarter of previous year.
On business front, the bank as has posted 47% growth
in business with strong 44% surge in loan book. The asset quality of the bank
was stable in Q2FY2023. Bank has reduced the credit to deposit ratio to 89.9% at
end September 2022 from 93.3% at end September 2021 with strong growth in
deposits. Further, the CASA ratio of the bank has jumped to 42.3% at end
September 2022 from 30.3% at end September 2021.
Asset quality stable: The bank has maintained stable asset quality in
Q2FY2023.
The fresh slippages of loans stood at Rs 262 crore
in Q2FY2023 compared with 253 crore in previous quarter and Rs 210 crore in the
corresponding quarter last year.
The recoveries of NPAs through recoveries,
upgradations and write-offs stood at Rs 234 crore in Q2FY2023.
The standard restructured loan book of the bank declined
at Rs 892 crore end September 2022.
Provision coverage ratio improved to 74.00% at
end September 2022 compared to 72.00% a quarter ago and 49.00% a year ago.
The capital adequacy ratio of the bank stood at 23.4%
with Tier I ratio at 21.3% at end September 2022.
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Asset Quality
Indicators: AU Small Finance Bank
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|
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Sep-22
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Jun-22
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Mar-22
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Dec-21
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Sep-21
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Variation
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|
QoQ
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YTD
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YoY
|
|
Gross NPA (Rs Crore)
|
996.70
|
969.62
|
924.38
|
1057.57
|
1151.45
|
3
|
8
|
-13
|
|
Net NPA (Rs Crore)
|
288.22
|
274.83
|
230.85
|
520.18
|
591.48
|
5
|
25
|
-51
|
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% Gross NPA
|
1.90
|
1.96
|
1.98
|
2.60
|
3.16
|
-6
|
-8
|
-126
|
|
% Net NPA
|
0.56
|
0.56
|
0.50
|
1.29
|
1.65
|
0
|
6
|
-109
|
|
% PCR
|
74.00
|
72.00
|
75.00
|
51.00
|
49.00
|
200
|
-100
|
2500
|
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% CRAR - Basel III
|
23.40
|
19.36
|
21.00
|
19.55
|
21.95
|
404
|
240
|
145
|
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% CRAR - Tier I -
Basel III
|
21.30
|
18.40
|
19.70
|
18.20
|
20.50
|
290
|
160
|
80
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Robust business growth: The business of the bank has increased 47% YoY
to Rs 110787 crore end September 2022, driven by 44% surge in advances to Rs 52452
crore. Deposits zoomed 49% to Rs 58335 crore at end September 2022.
CASA deposits ratio jumps: The CASA deposits of the bank zoomed 109% YoY to
Rs 24674 crore at end September 2022. The CASA ratio galloped to 42.3% at end
September 2022 compared to 30.3% at end September 2021, while moved up from 38.8%
a quarter ago.
Investment
book of the bank jumped 73% YoY
to Rs 20220 crore at end September 2022.
Margins improve: The NIM has improved 10 bps YoY to 6.2%. The
bank has showed 40 bps YoY decline in cost of deposits to 5.8%, while yield on
advances fell 70 bps YoY to 13.30% in Q2FY2023.
Branch expansion: The bank has added 27 branches in Q2FY2023, taking
overall tally to 980 branches. The ATMs count declined to 524 ATM`s end
September 2022.
Book value of the bank stood at Rs 151.9 per share at end September 2022,
while the adjusted book value (net of NNPA and 10% of restructured advances)
was Rs 146.3 per share at end September 2022.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 42% increase in the interest
earned at Rs 1992.29 crore, while interest expenses jumped 39% to Rs 908.94 crore
in Q2FY2023. NII improved 44% to Rs 1083.35 crore in the quarter ended
September 2022.
Healthy growth in the core fee income: Bank has posted strong 32% growth in core fee
income to Rs 245 crore, while treasury income declined 67% to Rs 2 crore. Overall
non-interest income increased 29% to Rs 247.36 crore in the quarter ended
September 2022.
Expenses ratio rises: The operating expenses of the bank increased 51%
to Rs 831.92 crore, as other expenses moved up 69% to Rs 380.62 crore, while
employee expenses jumped 38% to Rs 451.3 crore in Q2FY2023. Cost to income
ratio increased to 62.5% in Q2FY2023 compared with 58.5% in Q2FY2022. The
Operating Profit increased 27% to Rs 498.79 crore.
Provisions and contingencies rise: The bank has showed 828% jump in provisions to
Rs 42.96 crore. The loan loss provisions increased to Rs 66 crore, while bank
has written back standard asset provisions of Rs 21.00 crore and other
provisions of Rs 2.00 crore.
Effective tax rate declined to 24.8% in Q2FY2023 from 28.2% in Q2FY2022. Net
Profit increased 23% YoY to Rs 342.60 crore during quarter ended September
2022.
Financial Performance H1FY2023
Bank has posted 27% increase in net profit to Rs
610.46 crore in the year half year ended September 2022 (H1FY2023). The net
interest income increased 39% to Rs 2059.34 crore, while non-interest income was
flat at Rs 406.51 crore. Net total income increased 31% to Rs 2465.85 crore in
H1FY2023. The operating expenses jumped 56% to Rs 1573.01 crore, while
provision and contingencies declined 62% to Rs 81.32 crore, allowing profit
before tax to increase 22% to Rs 811.52 crore in H1FY2023. The cost-to-income
ratio jumped to 63.8% in H1FY2023 compared to 53.6% in H1FY2022. An effective
tax rate declined to 24.8% in H1FY2023 compared to 27.3% in H1FY2022. The net
profit has increased 27% to Rs 610.46 crore in H1FY2023.
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AU Small Finance Bank: Results
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Particulars
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2209 (3)
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2109 (3)
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Var %
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2209 (6)
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2109 (6)
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Var %
|
2203 (12)
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2103 (12)
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Var %
|
|
Interest Earned
|
1992.29
|
1404.75
|
42
|
3812.48
|
2758.25
|
38
|
5921.73
|
4950.05
|
20
|
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Interest Expended
|
908.94
|
651.62
|
39
|
1753.14
|
1281.10
|
37
|
2687.61
|
2584.61
|
4
|
|
Net Interest Income
|
1083.35
|
753.13
|
44
|
2059.34
|
1477.15
|
39
|
3234.12
|
2365.44
|
37
|
|
Other Income
|
247.36
|
191.92
|
29
|
406.51
|
406.68
|
0
|
993.69
|
1420.93
|
-30
|
|
Net Total Income
|
1330.71
|
945.05
|
41
|
2465.85
|
1883.83
|
31
|
4227.81
|
3786.37
|
12
|
|
Operating Expenses
|
831.92
|
552.58
|
51
|
1573.01
|
1009.54
|
56
|
2412.77
|
1658.42
|
45
|
|
Operating Profits
|
498.79
|
392.47
|
27
|
892.84
|
874.29
|
2
|
1815.04
|
2127.95
|
-15
|
|
Provisions &
Contingencies
|
42.96
|
4.63
|
828
|
81.32
|
211.78
|
-62
|
360.97
|
669.44
|
-46
|
|
Profit Before Tax
|
455.83
|
387.84
|
18
|
811.52
|
662.51
|
22
|
1454.07
|
1458.51
|
0
|
|
Provision for tax
|
113.23
|
109.33
|
4
|
201.06
|
180.79
|
11
|
324.24
|
287.82
|
13
|
|
PAT
|
342.60
|
278.51
|
23
|
610.46
|
481.72
|
27
|
1129.83
|
1170.69
|
-3
|
|
EPS*(Rs)
|
20.6
|
16.7
|
|
18.3
|
14.5
|
|
17.0
|
17.6
|
|
|
Adj BV (Rs)
|
146.3
|
191.1
|
|
146.3
|
191.1
|
|
226.3
|
171.4
|
|
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* Annualized on current equity of
Rs 665.67 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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