AU Small Finance Bank Ltd. expects to surpass the 38 percent growth in assets under management seen in the first half of the ongoing fiscal, according to its Managing Director and Chief Executive Officer Sanjay Agarwal.
“The first six months give only around 40 percent of the total disbursement and the second half is always better than the first half due to the festival season,” Agarwal told BloombergQuint. “Around 90 percent growth is contributed by strong retail disbursement of vehicle loans, secured business loans in rural and semi-urban areas.”
AU Small Finance Bank said fewer new vehicle sales have been offset by greater demand for second-hand vehicles. “Customers are finding a lot of value proposition in buying second-hand vehicles and we expect the vehicle finance growth to be around 25-30 percent year-on-year.”
Shares of AU Small Finance Bank rose 4.3 percent intraday to Rs 682.80 apiece.
Key Highlights: (YoY)
- Net Interest Income up 40.6 percent to Rs 451.6 crore.
- Net profit up 88.1 percent to Rs 171.9 crore.
- Provisions at Rs 61 crore versus Rs 35 crore.
- GNPA at 2.01 percent versus 2.08 percent (QoQ)
- NNPA at 1.14 percent versus 1.25 percent (QoQ)
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