AU Small Finance Bank hit an upper circuit of 5% at Rs 794.55 after the bank's net profit rose 5.5% to Rs 200.81 crore on 20.7% rise in total income to Rs 1409.91 crore in Q1 June 2020 over Q1 June 2019.
Profit before tax (PBT) rose 1.9% to Rs 264.34 crore in Q1 June 2020 as against Rs 259.33 crore in Q1 June 2019. Tax expense declined nearly 8% to Rs 63.52 crore in Q1 June 2020 over Q1 June 2019. The result was declared after market hours yesterday, 23 July 2020.AU Bank said Q1 June 2020 profit after tax (excluding gains on partial divestment of Aavas Financiers) grew by 48% year on year to Rs 177 crore.
Net interest income (NII) grew 30% Y-o-Y (year-on-year) to Rs 516 crore during Q1 June 2020 from Rs 396 crore in Q1 June 2019. Net interest margin remained stable at 5% in Q1 June 2020 similar to Q1 June 2019.
On the asset quality front, gross non-performing assets (NPAs) stood at Rs 447.12 crore as on 30 June 2020 as against Rs 457.78 crore as on 31 March 2020 and Rs 485.70 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 1.69% as on 30 June 2020 as against 1.68% as on 31 March 2020 and 2.08% as on 30 June 2019. The ratio of net NPAs to net advances stood at 0.62% as on 30 June 2020 as against 0.81% as on 31 March 2020 and 1.25% as on 30 June 2019.
The bank's provisions and contingencies soared 475% to Rs 181.25 crore in Q1 June 2020 over Rs 31.51 crore in Q1 June 2019. During the quarter, provision include additional provision of Rs 140 crore for potential impact of COVID-19 in addition to Rs 138 crore COVID-19 provision created in last quarter. The bank now carries Rs 278 crore of COVID-19 related provisions which constitutes 1% of its total gross advances and 10% of complete moratorium book.
The total deposits grew by 35% YoY to Rs 26,734 crore while advances rose 14% YoY to Rs 26,250 crore in Q1 June 2020. Complete moratorium has been availed by 11% of borrowers by value on gross advances as on 30th June 2020. Full EMI recovery has improved to 67% in June from 53% in April. Overall collection efficiency improved to 90% in June from 54% in April.
Commenting on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, "Bank continues to perform well enough on all metrics such as Deposit Growth, Extra Liquidity Buffers, Assets Quality, Digital Banking, Inclusive Banking, Customer Engagements and Employee Safety & Well-being resulting into a satisfactory quarter. In Q1FY21, our PAT grew by 48% with continuous declining trend in cost of funds."
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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