AU Small Finance Bank has reported a 30 per cent year-on-year (YoY) increase in total deposits and 24 per cent YoY increase in gross advances in the second quarter ended September 30, 2023.

As of September-end 2023, the Bank’s total deposits stood at ₹75,743 crore (₹58,335 crore as of September-end 2022), per provisional information uploaded on the exchanges.

Low-cost current account, savings account (CASA) deposits declined to 33.9 per cent as at September-end 2023 from 42.3 per cent as at September-end 2022. CASA deposits increased by 4 per cent YoY to ₹25,666 crore (₹24,674 crore).

Also Read | Small finance banks eye premium customers to diversify base, boost profitability

The Bank said its average Cost of Funds (COF) for Q2 (July-September) FY24 increased by 12 basis points (bps) quarter-on-quarter (QoQ) to 6.70 per cent as against 6.58 per cent in Q1 (April-June)FY24.

As of September-end 2023, the Bank’s gross advances stood at ₹65,029 crore (₹52,452 crore as of September-end 2022). per its exchange filing.

“Bank Securitized loan portfolio of ₹2,922 crore in Q2FY24 to diversify funding profile and optimise cost. The total securitised/assigned book stands at ₹6,591 crore as against ₹4,374 crore as on 30th June 2023,” AU SFB said.

Also Read | AU Small Finance Bank aims to reach 10 lakh cards-in-force by year-end: MD

Despite higher competitive intensity for deposit mobilisation, the Bank grew its overall deposits by 9 per cent sequentially (QoQ) and 30 per cent YoY with CASA deposits growing by 6 per cent QoQ, according to the bank’s management commentary.

“Credit demand remains resilient with disbursement sustaining across products and the Bank continued to see an uptick in disbursement yields on a QoQ basis. Asset quality continues to follow the seasonal trend and remains within the range,” it added.

Related Topics
comment COMMENT NOW