AU Small Finance Bank reported 87.2% jump in net profit to Rs 321.88 crore on 26.5% rise in total income to Rs 1498.15 crore in Q2 FY21 over Q2 FY20.
Profit before tax in the second quarter stood at Rs 408.91 crore, up by 88.7% as against Rs 216.69 crore in the same period last year. Provision for taxes jumped 94.5% to Rs 87.03 crore in Q2 September 2020 from Rs 44.75 crore in Q2 September 2019.
Net interest income jumped 24% to Rs 561 crore in Q2 September 2020 from Rs 452 crore in Q2 September 2019.
The bank's provisions and contingencies decreased by 5.9% to Rs 57.40 crore in Q2 FY21 from Rs 61.01 crore in Q2 FY20. As on 30 September 2020, the bank's provision coverage, as a proportion of gross NPAs stood at 71%.
As on 30 June 2020, 11% of the bank's borrowers, as percentage of its gross advances, had availed complete moratorium. As on 31 August 2020 (end of mortarium period), complete moratorium had reduced to 5.5% by gross advances. The bank is tracking this portfolio closely and 2.5% of borrowers from this portfolio have become active in September-October 2020.
The bank carries Rs 278 crore of COVID-19 related provisions which constitutes approximately 1% of gross advances. Based on activity levels of complete moratorium cases and collection feedback, the bank has not made any further COVID-19 related provisions.
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It has made additional provision of Rs 5.5 crore (including reversal of interest income) on Rs 25 crore portfolio which would have slipped into NPA in the absence of the Supreme Court order.
Gross non-performing assets (NPAs) stood at Rs 423.17 crore as on 30 September 2020 as against Rs 447.12 crore as on 30 June 2020 and Rs 503.84 crore as on 30 September 2019.
The ratio of gross NPAs to gross advances stood at 1.54% as on 30 September 2020 as against 1.69% as on 30 June 2020 and 2.01% as on 30 September 2019.
The ratio of net NPAs to net advances stood at 0.45% as on 30 September 2020 as against 0.62% as on 30 June 2020 and 1.14% as on 30 September 2019.
Total deposits have risen by 22% to Rs 26,980 crore in Q2 FY21 from Rs 22,149 in Q2 FY20. Advances at the end of the September 2020 quarter increased by 10% to Rs 27,233 crore as compared to Rs 24,809 crore at the end of September 2019 quarter.
CASA ratio (ex-CDs) increased to 21% as against 16% in Q1FY21 and 16% in Q2FY20.
Commenting on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank, said, "The on-ground situation has considerably improved in Q2FY21 and we saw positive momentum across all key metrices which include our Digital Banking journey, activity levels, collection efficiencies, retail deposits, and disbursements. Various pro-active initiatives taken by the Government and RBI have helped to mitigate the pandemic impact on borrowers. Further, AU Bank remains actively engaged to help affected customers. During these challenging times, the bank stood tall and the team worked with courage and zeal on the ground, and we remain deeply committed to serve society with utmost dedication and agility."
AU Small Finance Bank operates as a commercial bank. The bank offers financial products and services such as savings and current accounts, term deposits, debit cards, insurance, government banking, retail loans, and microfinance lending.
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