23% YoY Net Profit Growth in Q4 Results for AU Small Finance Bank

  • In Q4 net interest income increased by 37%, driving a 23% YoY increase in net profit to Rs 425 crore.
  • Asset quality improved in March as the gross non-performing assets ratio dropped to 1.7%.
  • Gross advances increased 26% YoY to Rs 59,158 crore, with retail accounting for 88% of the total.

One of the top financial organisations in India, AU Small Finance Bank, has released its Q4 financial results for 2022โ€“2023. With a 37% increase in net interest income, the bank’s net profit increased 23% YoY to Rs 425 crore. Let’s examine the bank’s performance in the March quarter in more detail.

Summary Table

๐Ÿ’ผ Company NameAU Small Finance Bank
๐Ÿ“… QuarterMarch
๐Ÿ’ฐ Net Profit23% YoY increase to Rs 425 crore
๐Ÿ’ฐ Net Interest Income (NII)Rs 4425 crore
๐Ÿ’ฐ Total Income34% increase to Rs 9240 crore
๐Ÿ’น Net Interest Margin (NIM)6.1% for Q4
๐Ÿ’ฐ Cost of FundsRose 32 basis points to 6.29%
๐Ÿ’ฐ DividendProposed Re 1/ per equity share for FY23
๐Ÿ“‰ Gross NPA RatioImproved to 1.7% from 1.98% YoY
๐Ÿ“‰ Net NPA Ratio0.4%
๐Ÿ’ผ Provision Coverage Ratio75%
๐Ÿ“ˆ Gross Advances26% YoY increase to Rs 59158 crore
๐Ÿ’ฐ Deposit32% YoY increase to Rs 69,365 crore
๐Ÿ’ฐ CASA DepositsRose 36% to Rs 26,660 crore
Source: AU Small Finance Bank

Excellent Financial Performance

The net interest income (NII) for the quarter was Rs 4425 crore, with the overall revenue for AU Small Finance Bank increasing 34% to Rs 9240 crore. In comparison to the same period last year, the bank’s net interest margin (NIM) for the quarter was 6.1% as opposed to 6.3%. To reach 6.29%, the cost of financing increased by 32 basis points.

At the end of March, the gross non-performing assets (GNPA) ratio declined from 1.98% to 1.7%, indicating an improvement in the asset quality of the lender. The net NPA was 0.4% as opposed to 0.5%. A 75% provision coverage ratio was maintained. Gross advances made by the bank increased 26% YoY to Rs 59,158 crore, with 88% of these being retail-related.

Dividends and deposits

Deposits at AU Small Finance Bank increased 32% year over year to Rs 69,365 crore in Q4. Additionally up 36% to Rs 26,660 crore were low cost CASA (current and savings account) deposits. For FY23, the bank board suggested a dividend of Re 1 per equity share.

Overall, AU Small Finance Bank’s Q4 financial performance was outstanding, with net profit increasing by 23% year over year and deposits and advances growing significantly. Additionally, the bank suggested a dividend for the current fiscal year since its asset quality improved.