Jaipur-headquartered AU Small Finance Bank reported a 24 per cent increase in first quarter net profit at ₹77 crore against ₹62 crore in the year-ago quarter.
Net interest income (the difference between interest earned and interest expended) jumped 56 per cent year-on-year (y-o-y) at ₹286 crore (₹183.50 crore in the year-ago quarter). Other income soared 87 per cent y-o-y at ₹103 crore (₹55 crore).
The bank said it received ₹43.28 crore from the sale of priority sector lending certificates (PSLCs) during the quarter. Of this, ₹10.82 crore has been recognised as income during the current quarter, and the balance ₹32.46 crore will be recognised equally over the subsequent three quarters.
Operating expenses, including employees cost and other operating expenses, shot up 108 per cent at ₹237 crore (₹114 crore). Provisions (other than tax) and contingencies increased 21 per cent at ₹35 crore (₹29 crore).
During the quarter, GNPAs increased by about ₹64 crore to ₹333.50 crore as of June-end 2018. GNPAs nudged up to 2.17 per cent of gross advances as of June-end 2018, against 2.01 per cent as of March-end 2018.
Following preferential allotment of equity shares and convertible warrants during the reporting quarter, the bank’s capital adequacy ratio improved to 20.72 per cent as of June-end 2018 from 19.31 per cent as of March-end 2018.