Jaipur-headquartered AU Small Finance Bank reported a 24 per cent increase in first quarter net profit at Rs 77 crore against Rs 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 at Rs 286 crore (Rs 183.50 crore in the year ago quarter).

Other income, which includes processing fee and other charges including marketing support fees, profit on sale of units of mutual fund, recovery from loans written-off, income from dealing in priority sector lending certificates, etc, soared 87 per cent yoy to Rs 103 crore (Rs 55 crore).

The Bank said it received Rs 43.28 crore from sale of priority sector lending certificates (PSLCs) during the quarter. Out of this amount, Rs 10.82 crore has been recognised as income during the current quarter and the balance Rs 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 to Rs 237 crore (Rs 114 crore). Provisions (other than tax) & contingencies increased 21 per cent to Rs 35 crore (Rs 29 crore).

During the quarter, gross non-performing assets (GNPAs) increased by about Rs 64 crore to Rs 333.50 crore as at June-end 2018.

GNPAs nudged up to 2.17 per cent of gross advances as at June-end 2018 against 2.01 per cent as at March-end 2018.

Following preferential allotment of equity shares and convertible warrants during the reporting quarter, the Bank’s capital adequacy ratio improved from 19.31 per cent as at March-end 2018 to 20.72 per cent as at June-end 2018.

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