AU Small Finance Bank Q2 Results: PAT jumps 42 per cent to Rs 571 Crore
Net profit for the second quarter ending September 30, 2024, reaching Rs 571 crore, compared to Rs 402 crore in the same period last year.
AU Small Finance Bank reported a solid 42 per cent year-on-year increase in net profit for the second quarter ending September 30, 2024, reaching Rs 571 crore, compared to Rs 402 crore in the same period last year. Sequentially, this represents a 13.5 per cent rise from Rs 503 crore posted in the June 2024 quarter.
Revenue Growth
Total income for Q2FY24 soared by 55 per cent to Rs 4,549 crore, up from Rs 2,937 crore a year ago. For the first half of the fiscal year, the bank recorded a net profit of Rs 1,074 crore, marking a 36 per cent growth from Rs 789 crore in the corresponding period last year.
Sanjay Agarwal, MD & CEO of AU Small Finance Bank, commented, “The first half of this financial year saw some disruption in business momentum due to persistent inflation, elections, and abnormal weather conditions. However, we are positive about an improved operating environment in the second half."
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Net Interest Margin & Loan Growth, Key KPIs
The bank’s gross loan portfolio surpassed Rs 1 lakh crore, reaching Rs 1,05,031 crore, while total deposits also exceeded Rs 1 lakh crore, totaling Rs 1,09,693 crore.
For the quarter under review, the Net Interest Margin (NIM) improved by 5 basis points to 6.1 per cent, up from 6.05 per cent in the June quarter. For the first half of FY25, the NIM stood at 6.1 per cent, up from 5.6 per cent in the same period last year.
However, the bank experienced a slight uptick in its Gross Non-Performing Assets (GNPA), which rose to 1.98 per cent from 1.78 per cent in the previous quarter. Similarly, Net Non-Performing Assets (NNPA) increased to 0.75 per cent from 0.63 per cent in the same period.
Operational and Customer Base Expansion
AU Small Finance Bank now serves over 10.9 million customers through a network of 2,408 touch points across 21 states and four Union Territories, with a workforce of around 48,000 employees. The bank’s shareholders' equity has also crossed Rs 16,000 crore.
In September, AU Small Finance Bank applied to the Reserve Bank of India to transition to a universal bank, a move aimed at strengthening its brand and supporting the next phase of growth, positioning it as a “forever bank.”