AU Small Finance Bank Ltd. reported strong growth in net profit and net interest income in the third quarter of the current financial year, meeting street expectations.
The NII rose 16% to Rs 2,341 crore in the October-December period, compared to Rs 2,023 crore in the corresponding quarter last year, according to an exchange filing on Tuesday. Analysts' consensus estimates compiled by Bloomberg projected Rs 2,309 crore.
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The net interest margin came higher than estimate, but lower than last year.
Profit after tax surged over 26% to Rs 668 crore, meeting estimate of Rs 646 crore, while operating profit was steady.
AU Small Finance Bank Q3 Results (YoY)
- Net interest income up 16% at Rs 2,341 crore versus Rs 2,023 crore (Bloomberg estimate: Rs 2,309 crore)
- Net interest margin at 5.7% versus 5.9% (Estimate: 5.6%)
- Net profit up 26.5% at Rs 668 crore versus Rs 528 crore (Estimate: Rs 646 crore)
- Operating profit up 1% at Rs 1,215 crore versus Rs 1,205 crore (Estimate: Rs 1,314 crore)
- Gross NPA at 2.3% versus 2.41% (Estimate: 2.35%) (QoQ)
- Net NPA flat at 0.88% (QoQ)
AU Small Finance Bank had an exceptional item in Q3 of Rs 20 crore provisioning arising from the implementation of the New Labour Code.
Overall, gross loan portfolio stood at Rs 1,29,898 crore, registering a YoY growth of 19.3% and QoQ growth of 5.7%, according to an investor presentation.
Slippages reduced by 13% QoQ at Rs 791 crore led by lower slippages across most verticals. Credit cost saw a pullback driven by normalisation in unsecured businesses and seasonal recovery in secured assets.
Shares of AU Small Finance Bank settled nearly 2% lower at Rs 1000.8 on tghe BSE, ahead of the results, compared to a 1.3% decline in the benchmark Sensex. The stock is up 65% on a 12-month basis.
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