- 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 2022–2023. 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
| Information | Description |
|---|---|
| 💼 Company Name | AU Small Finance Bank |
| 📅 Quarter | March |
| 💰 Net Profit | 23% YoY increase to Rs 425 crore |
| 💰 Net Interest Income (NII) | Rs 4425 crore |
| 💰 Total Income | 34% increase to Rs 9240 crore |
| 💹 Net Interest Margin (NIM) | 6.1% for Q4 |
| 💰 Cost of Funds | Rose 32 basis points to 6.29% |
| 💰 Dividend | Proposed Re 1/ per equity share for FY23 |
| 📉 Gross NPA Ratio | Improved to 1.7% from 1.98% YoY |
| 📉 Net NPA Ratio | 0.4% |
| 💼 Provision Coverage Ratio | 75% |
| 📈 Gross Advances | 26% YoY increase to Rs 59158 crore |
| 💰 Deposit | 32% YoY increase to Rs 69,365 crore |
| 💰 CASA Deposits | Rose 36% to Rs 26,660 crore |
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.