AU Small Finance Bank surged 6.51% to Rs 944.40 after the bank announced its third quarter earnings after market hours yesterday.
The bank reported 99.5% jump in net profit to Rs 190.20 crore in Q3 December 2019 as compared to Rs 95.33 crore in Q3 December 2018. Profit before tax (PBT) stood at Rs 272.74 crore in Q3 December 2019, up 86.5% from Rs 146.21 crore in Q3 December 2018.Net Interest Income (NII) grew 46% to Rs 507 crore during Q3 December 2019 from Rs 348 crore in Q3 December 2018. Total income rose 42.3% to Rs 1272.83 crore in Q3 December 2019 as compared to Rs 894.30 crore in Q3 December 2018.
Gross non-performing assets (NPAs) stood at Rs 503.99 crore as on 31 December 2019 as against Rs 503.84 crore as on 30 September 2019 and Rs 420.72 crore as on 31 December 2018.
The ratio of gross NPAs to gross advances stood at 1.88% as on 31 December 2019 as against 2.01% as on 30 September 2019 and 2.09% as on 31 December 2018.
The ratio of net NPAs to net advances stood at 1.01% as on 31 December 2019 as against 1.14% as on 30 September 2019 and 1.31% as on 31 December 2018.
The bank's provisions and contingencies (excluding tax provisions) jumped 23.6% to Rs 40.11 crore in Q3 December 2019 over Q3 December 2018.
Provision coverage ratio of the bank stood at 46.8% as on 31 December 2019 as compared to 43.9% on 30 September 2019 and 37.6% as on 37.6% on 31 December 2018 .
CASA Ratio (excluding Certificate of Deposits) maintained at approximately 17% as on 31 December 2019.
Commenting on the performance, Sanjay Agarwal, MD & CEO of AU Small Finance Bank said, Amidst slowing macro, our steady growth and improving asset quality is an outcome of our secured lending vintage, diversified product mix, growth opportunities in our core markets and Bank Pull. For Deposits, we are replicating our asset model and endeavoring to build a low cost, granular, and sticky retail deposit franchise in due course of time. Also, incrementally we are investing in customer engagement, branding, distribution, product and technology. We are carrying adequate liquidity. We will keep modulating our pace of growth in line with market environment and associated risks.
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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