NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities Report
AU Small Finance Bank Ltd.'s advances growth was slower at 20/4% YoY/QoQ, owing to slower growth in the core segment (~60% mix) of wheels (5/-2% YoY/QoQ), MBL (+6/3% YoY/QoQ).
However, growth in home Loans (+44/5% YoY/QoQ), business banking (+56/11% YoY/QoQ) remained healthy.
Net interest income grew by 15/6% YoY, highe than our expectations owing to lower than expected net interest margin compression. Margins declined by ~6 basis points and stood at 5.5% in Q3 FY24.
Non-interest income growth was primarily driven by healthy fee income (+33/4% YoY/QoQ). Opex growth was elevated (+25/9% YoY/QoQ) to reflect the investment phase resulting in cost-income ratio of 63% versus 61.3% QoQ.
Credit costs (calculated) stood at 96 bps versus 24/71 bpsYoY/QoQ. Profit after tax degrew by 4/7% YoY/QoQ.
AU Small Finance Bank's gross non-performing asset increased to 1.98% versus 1.91% QoQ, owing to higher slippages from the credit card portfolio and slower recoveries from core states of Rajasthan and Madhya Pradesh owing to state elections.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
