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AU Small Finance Bank reported a 37 per cent year-on-year (yoy) decline in third-quarter net profit at ₹302 crore against ₹479 crore in the year ago period.
Net interest income (difference between interest earned and interest expended) was up about 30 per cent YoY to ₹820 crore (₹633 crore in the year ago quarter)
Other Income, which includes processing fee, profit/ loss on sale of investments (including provision for depreciation), recovery from loans written off, income from dealing in priority sector lending certificates, etc., declined about 60 per cent YoY to ₹276 crore (₹686 crore).
Profit on sale of investment for the year-ago period includes profit (₹480 crore) earned on the sale of equity shares (part stake) held in Aavas Financiers Ltd, per the notes to accounts.
Provisions (other than taxes) and Contingencies declined sharply to ₹56 crore (₹306 crore).
Gross non-performing assets (GNPAs) declined by about ₹94 crore during the reporting quarter to ₹1,058 crore as at December end.
The GNPA position improved to 2.60 per cent of gross advances in the reporting quarter against 3.16 per cent in the preceding quarter. The Net NPA (NNPA) position also improved to 1.29 per cent of net advances against 1.65 per cent.
Total advances were up 33 per cent yoy to ₹40,181 crore as at December-end 2021.
Total Deposits increased by 49 per cent per cent yoy to ₹44,278 crore as at December-end 2021.
Meanwhile, the Board of Directors of the Bank, at its meeting held on Friday, on the recommendation of the Nomination and Remuneration Committee considered and approved the re-appointment of Sanjay Agarwal as Managing Director & CEO and Uttam Tibrewal as Whole Time Director of the Bank with effect from April 19, 2022, for a period of four years, subject to the approval of Shareholders and RBI.
The Bank said RBI has already approved the tenure of Sanjay Agarwal as Managing Director & CEO and Uttam Tibrewal as Whole Time Director till 18th April, 2023 and approval of RBI for next tenure will be obtained in due course.
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