Net interest income (NII) stood at Rs 1,249 crore in Q2 FY24, up 15% as against Rs 1,083 crore in Q2 FY23. Net interest margin (NIM) reduced to 5.5% in Q2 FY24 as compared to 6.2% reported in the same period a year ago.

Pre-provisioning profit in Q2 FY24 was at Rs 647.70 crore, registering a growth of 30% from Rs 498.78 crore in Q2 FY23. Provisions soared 166.11% YoY to Rs 114.32 crore in Q2 FY24.

The bank's total deposits grew by 30% YoY to Rs 75,743 crore while gross advances increased by 24% YoY to Rs 65,029 crore. Cost of funds improved by 12bps QoQ to 6.70% in Q2 FY24.

The bank's gross non-performing assets (NPAs) stood at Rs 1,244.75 crore as on 30 September 2023 as against Rs 996.70 crore as on 30 September 2022.

GNPA ratio stood at 1.91% as on 30 September 2023 as against 1.90% as on 30 September 2022. Net NPA ratio was at 0.60% as compared to 0.56% as on 30 September 2022.

The CASA deposits increased by 4% YoY to Rs 25,666 crore in Q2 FY24 as compared to Rs 24,674 crore in Q2 FY23. CASA ratio stood at 34% in Q2 FY24.

Provisioning coverage ratio (PCR) remained stable at 69% (73% including technical write-off and floating provision).

Capital adequacy ratio (CRAR) was at 22.4% and tier I at 21% as on 30 September 2023.

During the quarter, the customer base using digital properties like “AU 0101” increased to 24.2 lakh from 14.3 lakh in Q2 FY23. Of these, 13.1 lakh customers have been availing services actively on monthly basis.

The bank added 4 touchpoints during the quarter and for the full year, bank plans to open more than 50 touchpoints additionally.

Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, “our performance in Q2'FY24 was resilient and sustainable with growth across deposits, digital and advances. This resilience is further complemented by the positive outlook in AU markets, where there are promising prospects for growth and market penetration. Our key strategic focus is on building lowcost retail deposits, even in the current environment of elevated costs and intense competition.

While being watchful, I am quite optimistic about the Indian economy in the long term and the banking sector looks poised for sustained period of growth. The business is excelling on all fronts, instilling great confidence in us to affirm our FY24 guidance set forth at the start of this fiscal year and we continue to focus on sustainable growth, aiming to further fortify our balance sheet.”

AU Small Finance Bank (AU SFB/AU) is a scheduled commercial bank, a Fortune India 500 Company and the largest Small Finance Bank in the country.

The scrip rose 0.46% to close at Rs 689.75 on Friday, 27 October 2023.