Money & Banking

AU Small Finance Bank Q2 net profit up 87%

Mumbai | Updated on October 28, 2020

AU Small Finance Bank reported an 87.2 per cent jump in net profit to ₹321.87 crore in the second quarter of this fiscal from ₹171.94 crore a year ago.

Its net interest income grew by 24 per cent on a year-on-year basis to ₹561 crore in the quarter ended September 30, 2020, though other income fell by 6 per cent to ₹141 crore.

Its provisions declined to ₹574 crore in the second quarter of this fiscal, 6 per cent lower than ₹610 crore a year ago.

“The bank carries ₹278 crore of Covid-19-related provisions, which constitute about 1 per cent of gross advances,” said AU Small Finance Bank in a statement on Wednesday.

As on September 30, 2020, gross non-performing assets were at 1.54 per cent of gross advances, and net NPAs were at 0.45 per cent of net advances versus 2.01 per cent and 1.14 per cent, respectively, in the same period last fiscal.

It has made additional provision of ₹5.5 crore (including reversal of interest income) on ₹25-crore portfolio, which would have slipped into NPA in the absence of Supreme Court order.

“The on-ground situation has considerably improved in the second quarter of 2020-21, and we saw positive momentum across all key metrices, which include our digital banking journey, activity levels, collection efficiencies, retail deposits, and disbursements,” said Sanjay Agarwal, Managing Director and CEO, AU Small Finance Bank.

Published on October 28, 2020

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