- AU Bank won “India’s Best Small Finance Bank” award at BFSI & FinTech Awards 2023 by Dun & Bradstreet
- AU Bank won “Retail Banker International Asia Trailblazer Award” for 2022-23 in the category of “Excellence in Talent Management”
- Net interest income for Q4 was 30 percent higher y-o-y
NE BUSINESS BUREAU
MUMBAI, JAIPUR, APR 27
AU Small Finance Bank posted its highest ever quarterly profit of ₹425 crore in Q4 FY23, up 23 percent y-o-y and 8 percent sequentially.
Commenting on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, “The Bank has delivered another quarter and another year of consistent performance across all parameters despite the challenges around inflation, liquidity leading to higher interest rates. 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%. Our focus on governance remains our top priority and with the addition of 3 new independent directors during the year, the total Board strength has now reached to 10 directors with 8 of them being Independent Directors including 2 women directors. As a Bank, we are positioning ourselves to take advantage of the India opportunity over the next decade – be it products, technology, distribution or manpower. We continue to lay foundation of building a sustainable and well governed, pan-India Bank with a generational mindset having practices and processes which are Standardised, Scalable and Sustainable.
As AU Bank completes 6th year as a Small Finance Bank and 28 years as an Institution, it gives me immense satisfaction and pride as a founder and an entrepreneur and receiving the Authorized Dealer Category – I license (AD-I) on our anniversary date of 19th April was the perfect gift that any Institution could have wished for. I would like to express my gratitude to the Government, RBI and other regulators for their support and guidance and to our Investors, customers, employees, and other stakeholders for their unwavering trust in AU. To express gratitude to our shareholders the Board has recommended a dividend of Re 1/- per equity share (10% of face value) for FY23”.
For FY23, net profit was 26 per cent higher at ₹1,428 crore led by 37 per cent growth in net interest income (NII) of ₹4,425 crore. NIM for the year was at 6.1 per cent.
NII for Q4 was 30 per cent higher y-o-y and 5 per cent q-o-q to ₹1,213 crore. NIM for the quarter was 6.1 per cent compared with 6.3 per cent a year ago.
AU Small Finance Bank’s advances grew 26 per cent y-o-y to ₹59,158 crore as on March 31, of which 88 per cent loans were retail and 92 per cent were secured. The lender said that the ratio of fixed rate to floating rate loans improved to 66:34 from 74:26 a year ago.
Outstanding credit cards stood at over 5 lakh, of which 26 per cent customers are first time credit card users and 64 per cent are new to the bank, it said in a release.
Deposits of the bank grew 32 per cent to ₹69,365 crore led by 36 per cent rise in low-cost CASA deposits to ₹26,660 crore—accounting for 38 per cent of total deposits.
Gross NPA ratio improved to 1.7 per cent from 2.0 per cent a year ago, and the net NPA ratio to 0.4 per cent from 0.5 per cent.
Provision coverage ratio was at 75 per cent. In addition to provisions of ₹695 crore held against NPAs, AU Small Finance Bank has provisions against restructured assets of ₹116 crore, contingency provisions of ₹90 crore, floating provisions of ₹41 crore and standard provisions of ₹191 crore as of March 31.
Capital adequacy ratio of the bank was 23.6 per cent, of which tier-I capital comprised 21.8 per cent.
