AU Small Finance Bank Q2 Results: Profit Declines 2%; NII, Provisions Rises

AU Small Finance Bank's standalone net profit during the quarter ended September fell 1.8% to Rs 561 crore, compared to Rs 571 crore in the year-ago period, according to an exchange filing on Friday.

The net interest income — the difference of interest earned and interest paid — for the quarter rose 8.6% to Rs 2,144 crore. This compares to Rs 1,974 crore reported in the corresponding quarter of the previous fiscal.

• Profit slumps 1.8% to Rs 561 versus Rs 571 crore.

• Net interest income rises 8.6% to Rs 2,144 crore versus Rs 1,974 crore.

• Provisions up 28.9% at Rs 481 crore versus Rs 373 crore.

• Gross NPA comes in at 2.41% versus 2.47% (QoQ).

• Net NPA flat at 0.88% (QoQ).

AU Small Finance Bank's asset quality also improved during the quarter under review, with the gross non-performing assets ratio declining to 2.41% from 2.47% in the July-September period. In absolute terms, the gross NPA rose to Rs 2.84 lakh crore from Rs 2.75 lakh crore in the last quarter.

The net NPA ratio was flat at 0.88% in the second quarter of this fiscal. In absolute terms, the net NPA rose to Rs 1.02 lakh crore from Rs 2.75 lakh crore.

Gross slippages of the bank fell 12% quarter-on-quarter to Rs 908 crore from Rs 1,027 crore led by lower fresh NPA formation in credit cards, mortgages and commercial bankings.

The banks gross loan portfolio rose 17% year-on-year at Rs 1.05 lakh crore, while the unsecured business fell 23.3% year-on-year.

Net Interest margins expanded by 5 basis points in the second quarter at 5.5%.

Provisions for the quarter were up 29% year-on-year at Rs 481 crore from Rs 373 crore posted in the previous quarter. However, sequentially provisions saw a decline of 10%.

The earnings came after the market hours. The shares closed 0.76% lower at Rs 792.45 apiece, in comparison to 0.49% advance in Nifty 50.

AU Small Finance Bank stock has risen 15.36% in the last 12 months and 41.74% year-to-date.