AU Small Finance Bank reports that its first-quarter net profit increases 37% to Rs 796 crore, compared with Rs 581 crore in the same quarter last year, citing improved asset quality and the normalisation of unsecured loan performance. The bank also reports business growth alongside a rise in earnings.
On earnings, pre-provision operating profit grows 9% year-on-year to Rs 1,435 crore, supported by a 32% increase in net interest income to about Rs 2,696–2,695 crore. The bank’s net interest margin stands at 5.9%, up 47 basis points from the year-ago quarter, though it notes a small quarter-on-quarter moderation.
While results point to improved asset quality, at least one outlet highlights a slight deterioration. The Economic Times says the gross non-performing assets (GNPA) ratio improves to 2.1% as of June 30 from 2.5% a year earlier, with a 22% decline in fresh slippages. Provisions fall 30% to Rs 372 crore from Rs 533 crore. Operating expenses rise year-on-year due to higher volumes and investments in distribution, manpower, branding, and technology.
