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AU Small Finance Bank has reported 44% growth in
net profit at Rs 386.90 crore for the quarter ended June 2023 (Q1FY2024). The
bank has posted healthy 28% growth in net interest income (NII), while the core
fee income of the bank also improved 39% in Q1FY2024. The Net Interest Margin
(NIM) of the bank declined to 5.70% in Q1FY2024 compared to 5.90% in the
corresponding quarter of previous year.
On business front, the bank as has posted 28% growth
in business with strong 29% surge in loan book. The asset quality of the bank
was stable in Q1FY2024. Bank has raised the credit to deposit ratio to 91.8% at
end June 2023 from 90.3% at end June 2022. However, the CASA ratio of the bank
has declined to 35.0% at end June 2023 from 38.8% at end June 2022.
Asset quality improves: The bank has maintained stable asset quality in
Q1FY2024.
The fresh slippages of loans stood at Rs 317 crore
in Q1FY2024 compared with 191 crore in previous quarter and Rs 253 crore in the
corresponding quarter last year.
The recoveries, upgradations and write-off of
NPAs was at Rs 177 crore in Q1FY2024.
The standard restructured loan book of the bank
stood at Rs 505 crore end June 2023.
Provision coverage ratio was steady at 73% at
end June 2023 compared to 75 a quarter ago and 74% a year ago.
The capital adequacy ratio of the bank stood at 21.5%
with Tier I ratio at 19.9% at end June 2023.
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Asset Quality
Indicators: AU Small Finance Bank
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|
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Jun-23
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Mar-23
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Dec-22
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Sep-22
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Jun-22
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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1121.23
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981.31
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1018.86
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996.70
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969.62
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14
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16
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Net NPA (Rs Crore)
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347.15
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245.16
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284.56
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288.22
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274.83
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42
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26
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% Gross NPA
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1.76
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1.66
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1.81
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1.90
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1.96
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10
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-20
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% Net NPA
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0.55
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0.42
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0.51
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0.56
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0.56
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13
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-1
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% PCR
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73.00
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75.00
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75.00
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74.00
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74.00
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-200
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-100
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% CRAR - Basel III
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21.46
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23.59
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21.97
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23.36
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19.36
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-213
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210
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% CRAR - Tier I -
Basel III
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19.90
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21.80
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20.00
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21.30
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18.40
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-190
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150
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth: The business of the bank has increased 28% YoY
to Rs 132950 crore end June 2023, driven by 29% surge in advances to Rs 63635 crore.
Deposits rose 27% to Rs 69315 crore at end June 2023.
CASA deposits ratio declines: The CASA deposits of the bank moved up 14% YoY
to Rs 24286 crore at end June 2023. The current account deposits jumped 47% to
Rs 3240 crore, while saving account deposits increased 11% to Rs 21046 crore
end June 2023. The CASA ratio declined to 35.0% at end June 2023 compared to 38.8%
at end June 2022 and 38.4% a quarter ago.
Strong loan growth: Advances growth was driven by retail loans
rising 30% YoY to Rs 30927 crore at end June 2023, while credit to agriculture
increased 61% to Rs 4335 crore and MSME 22% to Rs 24760 crore at end June 2023.
The corporate credit has expanded 37% to Rs 3613 crore end June 2023.
Investment
book of the bank increased 26%
YoY to Rs 21627 crore at end June 2023.
Margins ease: The bank has showed 90 bps YoY increase in cost of deposits to 6.60%,
while yield on advances rose 10 bps YoY to 13.40% in Q1FY2024. NIM has declined
20 bps YoY to 5.70%.
Branch expansion: The bank has added 11 branches and 2 ATMs in
Q1FY2024, taking overall tally to 1038 branches and 495 ATM`s end June 2023.
Book value of the bank stood at Rs 170.6 per share at end June 2023, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 164.6
per share at end June 2023.
Quarterly Performance
NII rises on strong loan growth: Bank has recorded 35% increase in the interest
earned at Rs 2458.34 crore, while interest expenses increased 44% to Rs 1212.13
crore in Q1FY2024. NII improved 28% to Rs 1246.21 crore in the quarter ended
June 2023.
Healthy growth in the core fee income: Bank has posted strong 39% growth in core fee
income to Rs 298 crore, while the treasury income rebounded to Rs 17 crore in
Q1FY24 from loss of Rs 55 crore in Q1FY23,
leading to 98% jump in the overall non-interest income to Rs 315.12 crore
in the quarter ended June 2023.
Stable expenses ratio: The operating expenses of the bank increased 37%
to Rs 1015.29 crore, as other expenses moved up 46% to Rs 508.25 crore, while
employee expenses increased 29% to Rs 507.04 crore in Q1FY2024. Cost to income
ratio was nearly stable at 65.0% in Q1FY2024 compared with 65.3% in Q1FY2023, helping
the Operating Profit to increase 39% to Rs 546.04 crore.
Provisions and contingencies decline: The bank has showed -14% decline in provisions
to Rs 32.98 crore. The loan loss provisions increased 48% to Rs 95 crore, while
the bank has reversed standard asset provisions of Rs 63 crore.
Effective tax rate declined to 24.6% in Q1FY2024 from 24.7% in Q1FY2023. Net
Profit rose by 44% YoY to Rs 386.90 crore during quarter ended June 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.
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AU Small Finance Bank: Results
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Particulars
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2306 (3)
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2206 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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2458.34
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1820.20
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35
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8205.41
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5921.73
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39
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Interest Expended
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1212.13
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844.20
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44
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3780.13
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2687.61
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41
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Net Interest Income
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1246.21
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976.00
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28
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4425.28
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3234.12
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37
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Other Income
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315.12
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159.15
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98
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1034.46
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993.69
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4
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Net Total Income
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1561.33
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1135.15
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38
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5459.74
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4227.81
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29
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Operating Expenses
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1015.29
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741.08
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37
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3440.27
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2412.77
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43
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Operating Profits
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546.04
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394.07
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39
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2019.47
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1815.04
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11
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Provisions &
Contingencies
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32.98
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38.37
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-14
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154.84
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360.97
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-57
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Profit Before Tax
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513.06
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355.70
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44
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1864.63
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1454.07
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28
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Provision for tax
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126.16
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87.83
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44
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436.71
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324.24
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35
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PAT
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386.90
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267.87
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44
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1427.92
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1129.83
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26
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EPS*(Rs)
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23.2
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16.1
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21.4
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16.9
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Adj BV (Rs)
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164.6
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117.7
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159.9
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113.2
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* Annualized on current equity of
Rs 667.02 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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