Money & Banking

AU Small Finance Bank Q2 net profit up 88%

Our Bureau Mumbai | Updated on October 21, 2019 Published on October 21, 2019

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

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

The bank’s gross non-performing assets remained unchanged at two percent 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 Rs 27,876 crore year on year while deposits grew 72 per cent year on year to Rs 22,149 crore during the quarter under review.

“Despite all the 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 AU Small Finance Bank also appointed 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, 2020, subject to RBI and other regulatory approvals,” it said in a regulatory filing.

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Published on October 21, 2019
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