Money & Banking

AU SFB Q2 net profit rises 88%

Mumbai | Updated on October 21, 2019

AU Small Finance Bank reported an 88 per cent jump in net profit to ₹171.94 crore in the second quarter of the fiscal. It had a net profit of ₹91.41 crore in the same period a year ago.

The bank’s net interest income grew a healthy 41 per cent to ₹452 crore in the July to September 2019 quarter, against ₹321 crore in the corresponding period last fiscal. Other income rose 23 per cent at ₹151 crore.

The bank’s gross non-performing assets remained unchanged at two per cent of gross advances as on September 30, 2019, from a year ago. Net NPAs improved marginally to 1.1 per cent at the end of the second quarter from 1.3 per cent a year ago.

Its loans AUM grew 38 per cent to ₹27,876 crore year-on-year, while deposits grew 72 per cent to ₹22,149 crore during the quarter under review.

“Despite challenges, this quarter we delivered an all-round best quarterly result so far on asset quality, margins, costs-to-income ratio, profitability and return on asset and return on equity, with measured growth on a smaller base,” said Sanjay Agarwal, Managing Director and CEO, AU Small Finance Bank.

The board of directors of the SFB also appointed two two independent directors –MS Sriram and Pushpinder Singh – with immediate effect.

It also approved the reappointment of Agarwal as MD and CEO and Uttam Tibrewal as whole-time director of the bank for a three-year period. “The appointment will be effective from April 19, subject to the RBI and other regulatory approvals,” it said in a regulatory filing.

Published on October 21, 2019

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