AU Small Finance Bank has reported 17% growth in
net profit at Rs 401.81 crore for the quarter ended September 2023 (Q2FY2024). The
bank has posted healthy 15% growth in net interest income (NII), while the core
fee income of the bank zoomed 69% in Q2FY2024. The Net Interest Margin (NIM) of
the bank dipped to 5.50% in Q2FY2024 compared to 6.20% in the corresponding
quarter of previous year.
On business front, the bank as has posted 27% growth
in business with strong 24% surge in loan book. The asset quality of the bank has
witnessed slight moderation in Q2FY2024. Bank has reduced the credit to deposit
ratio to 85.9% at end September 2023 from 89.9% at end September 2022. The CASA
ratio of the bank has declined to 33.9% at end September 2023 from 42.3% at end
September 2022.
Asset quality witnesses pressure: The bank has witnessed pressure on asset quality
in Q2FY2024.
The fresh slippages of loans stood at Rs 349 crore
in Q2FY2024 compared with 317 crore in previous quarter and Rs 262 crore in the
corresponding quarter last year.
The recoveries, upgradations and the write-off
of NPAs was at Rs 226 crore in Q2FY2024.
The standard restructured loan book of the bank
stood at Rs 424 crore end September 2023.
Provision coverage ratio was steady at 73% at
end September 2023 compared to 73% a quarter ago and 74% a year ago.
The capital adequacy ratio of the bank stood at 22.4%
with Tier I ratio at 0.0% at end September 2023.
Asset Quality
Indicators: AU Small Finance Bank
|
|
Jun-23
|
Mar-23
|
Dec-22
|
Sep-22
|
Jun-22
|
Variation
|
QoQ
|
YTD
|
YoY
|
Gross NPA (Rs Crore)
|
1121.23
|
981.31
|
1018.86
|
996.70
|
969.62
|
14
|
10
|
16
|
Net NPA (Rs Crore)
|
347.15
|
245.16
|
284.56
|
288.22
|
274.83
|
42
|
22
|
26
|
% Gross NPA
|
1.76
|
1.66
|
1.81
|
1.90
|
1.96
|
10
|
-5
|
-20
|
% Net NPA
|
0.55
|
0.42
|
0.51
|
0.56
|
0.56
|
13
|
4
|
-1
|
% PCR
|
73.00
|
75.00
|
75.00
|
74.00
|
74.00
|
-200
|
-200
|
-100
|
% CRAR - Basel III
|
21.46
|
23.59
|
21.97
|
23.36
|
19.36
|
-213
|
-51
|
210
|
% CRAR - Tier I -
Basel III
|
19.90
|
21.80
|
20.00
|
21.30
|
18.40
|
-190
|
-10
|
150
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth: The business of the bank has increased 27% YoY
to Rs 140772 crore end September 2023, driven by 24% surge in advances to Rs 65029
crore. Deposits rose 30% to Rs 75743 crore at end September 2023.
CASA deposits ratio declines: The CASA deposits of the bank rose 4% YoY to Rs 25666
crore at end September 2023. The current account deposits increased 62% to Rs 4636
crore, while saving account deposits declined 4% to Rs 21030 crore end
September 2023. The CASA ratio declined to 33.9% at end September 2023 compared
to 42.3% at end September 2022, while declined from 35.0% a quarter ago. The
term deposits have increased 49% to Rs 50077 crore end September 2023.
Strong loan growth: Advances growth was driven by retail loans
rising 25% YoY to Rs 31417 crore at end September 2023, while credit to
agriculture increased 58% to Rs 4757 crore and MSME 16% to Rs 24946 crore at
end September 2023. The corporate credit has jumped 38% to Rs 3909 crore end
September 2023.
Investment
book of the bank increased 15%
YoY to Rs 23220 crore at end September 2023.
Margins decline: The bank has showed 90 bps YoY jump in cost of
deposits to 6.70%, while yield on advances was flat YoY at 13.30% in Q2FY2024. Thus,
the NIM has declined 70 bps YoY to 5.50%.
Branch expansion: The bank has added 4 branches in Q2FY2024, taking
overall tally to 1042 branches and 495 ATM`s end September 2023.
Book value of the bank stood at Rs 175.3 per share at end September 2023,
while the adjusted book value (net of NNPA and 10% of restructured advances)
was Rs 168.9 per share at end September 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 27% increase in the interest
earned at Rs 2531.05 crore, while interest expenses increased 41% to Rs 1282.09
crore in Q2FY2024. NII improved 15% to Rs 1248.96 crore in the quarter ended
September 2023.
Robust growth in the core fee income: Bank has posted strong 69% growth in core fee
income to Rs 415 crore, while treasury income jumped 450% to Rs 11 crore, leading to 72% surge in the overall
non-interest income to Rs 425.46 crore in the quarter ended September 2023.
Expenses ratio improves: The operating expenses of the bank increased 23%
to Rs 1026.74 crore, as other expenses moved up 35% to Rs 514.72 crore, while
employee expenses increased 13% to Rs 512.02 crore in Q2FY2024. Cost to income
ratio declined to 61.3% in Q2FY2024 compared with 62.5% in Q2FY2023. The
Operating Profit increased 30% to Rs 647.68 crore.
Provisions and contingencies zooms: The bank has showed 166% spurt in provisions to
Rs 114.32 crore. The loan loss provisions galloped 117% to Rs 143 crore, while the
bank has written back investment provisions of Rs 30 crore.
Effective tax rate declined to 24.7% in Q2FY2024 from 24.8% in Q2FY2023. Net
Profit rose by 17% YoY to Rs 401.81 crore during quarter ended September 2023.
Financial Performance H1FY2024:
Bank has posted 29% increase in net profit to Rs
788.72 crore in the half year ended September 2023 (H1FY2024). The net interest
income increased 21% to Rs 2495.18 crore, while non-interest income moved up 82%
to Rs 740.58 crore, pushing up net total income by 31% to Rs 3235.76 crore in
H1FY2024. The operating expenses increased 30% to Rs 2042.03 crore, while
provision and contingencies galloped 81% to Rs 147.30 crore, allowing profit
before tax to increase 29% to Rs 1046.43 crore in H1FY2024. The cost-to-income
ratio improved to 63.1% in H1FY2024 compared to 63.8% in H1FY2023. An effective
tax rate declined to 24.6% in H1FY2024 compared to 24.8% in H1FY2023. The net
profit has increased 29% to Rs 788.72 crore in H1FY2024.
AU Small Finance Bank: Results
|
Particulars
|
2309 (3)
|
2209 (3)
|
Var %
|
2309 (6)
|
2209 (6)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
Interest Earned
|
2531.05
|
1992.29
|
27
|
4989.39
|
3812.48
|
31
|
8205.41
|
5921.73
|
39
|
Interest Expended
|
1282.09
|
908.94
|
41
|
2494.21
|
1753.14
|
42
|
3780.13
|
2687.61
|
41
|
Net Interest Income
|
1248.96
|
1083.35
|
15
|
2495.18
|
2059.34
|
21
|
4425.28
|
3234.12
|
37
|
Other Income
|
425.46
|
247.36
|
72
|
740.58
|
406.51
|
82
|
1034.46
|
993.69
|
4
|
Net Total Income
|
1674.42
|
1330.71
|
26
|
3235.76
|
2465.85
|
31
|
5459.74
|
4227.81
|
29
|
Operating Expenses
|
1026.74
|
831.92
|
23
|
2042.03
|
1573.01
|
30
|
3440.27
|
2412.77
|
43
|
Operating Profits
|
647.68
|
498.79
|
30
|
1193.73
|
892.84
|
34
|
2019.47
|
1815.04
|
11
|
Provisions &
Contingencies
|
114.32
|
42.96
|
166
|
147.30
|
81.32
|
81
|
154.84
|
360.97
|
-57
|
Profit Before Tax
|
533.36
|
455.83
|
17
|
1046.43
|
811.52
|
29
|
1864.63
|
1454.07
|
28
|
Provision for tax
|
131.55
|
113.23
|
16
|
257.71
|
201.06
|
28
|
436.71
|
324.24
|
35
|
PAT
|
401.81
|
342.60
|
17
|
788.72
|
610.46
|
29
|
1427.92
|
1129.83
|
26
|
EPS*(Rs)
|
24.1
|
20.5
|
|
23.61
|
18.27
|
|
21.4
|
16.9
|
|
Adj BV (Rs)
|
168.9
|
145.7
|
|
168.9
|
145.7
|
|
159.9
|
113.2
|
|
* Annualized on current equity of
Rs 668.23 crore. Face Value: Rs 10, Figures in Rs crore
|
Source: Capitaline Corporate
Database
|
|