The Jaipur-based bank beat estimates for its Q4 earnings. Shares of AU Small Finance Bank ended at Rs 660.15, down by Rs 3.85, or 0.58 percent on the BSE.
Jaipur-based AU Small Finance Bank Ltd on Tuesday, April 25, reported a 22.7 percent year-on-year (YoY) jump in net profit at Rs 424.6 crore for the fourth quarter that ended March 31, 2023, its highest-ever quarterly profit.
In the corresponding quarter last year, the company posted a net profit of Rs 346.1 crore. CNBC-TV18 Polls had predicted a profit of Rs 398.8 crore for the quarter under review.
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, grew 29.5 percent YoY to Rs 1,213.2 crore against Rs 936.6 crore in the same period previous fiscal, it said.
CNBC-TV18 Polls had predicted a profit of Rs 1,198.8 crore for the quarter under review.
Gross NPA stood at 1.66 percent in the March quarter against 1.81 percent in the December quarter. Net NPA came at 0.42 percent against 0.51 percent quarter-on-quarter.
In monetary terms, gross NPA stood at Rs 981.3 crore against Rs 1,018.9 crore quarter-on-quarter, whereas net NPA came at Rs 245.2 crore against Rs 284.6 crore quarter-on-quarter. Provisions stood at Rs 40.9 crore against Rs 32.6 crore quarter-on-quarter, the lender added.
The bank's total capital adequacy stood at a healthy 23.6 percent against the minimum requirement of 15 percent, of which tier-I capital stood at 21.8 percent as against the minimum requirement of 7.5 percent.
The bank's total balance sheet grew by 31 percent year-on-year to Rs 90,216 crore. Deposits grew by 32 percent year-on-year to Rs 69,365 crore.
"Amidst a difficult market, we have managed to grow our deposit book while keeping our CASA ratio stable and making our deposits more granular and retail. Our asset quality has also improved further this year with net NPA coming down to 0.4 percent," said Sanjay Agarwal, MD and CEO of AU Small Finance Bank.
The board of directors of the bank has recommended a dividend of Rs 1 per equity share (10 percent of face value) from the net profit for the year ended March 2023, subject to the approval of shareholders.
AU started its banking operations in April 2017, and as on March 31, 2023, it has established operations across 1,027 banking touchpoints.
Shares of AU Small Finance Bank ended at Rs 660.15, down by Rs 3.85, or 0.58 percent on the BSE.
(Edited by : Shoma Bhattacharjee)
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