AU Small Finance Bank's standalone net profit jumped 151.9% to Rs 479.02 crore on 51.2% rise in total income to Rs 1924.53 crore in Q3 FY21 over Q3 FY20.
The small finance bank's profit before tax was at Rs 589.23 crore in Q3 FY21, 116% higher than Rs 272.74 crore in Q3 FY20. Tax expense spiked 33.5% to Rs 110.20 crore in Q3 FY21 over Q3 FY20.Operating profit before provisions and contingencies for Q3 FY21 grew 179% to Rs 873 crore as against Rs 313 crore in Q3 FY20. Net Interest Income (NII) for Q3 FY21 jumped 25% to Rs 633 crore from Rs 507 crore for Q3 FY20. Net Interest Margin (NIM) was at 5.4% at the end of December 2020.
Gross non-performing assets (NPAs) stood at Rs 302.73 crore as on 31 December 2020 as against Rs 423.16 crore as on 30 September 2020 and Rs 503.99 crore as on 31 December 2019. The ratio of gross NPAs to gross advances stood at 0.99% as on 31 December 2020 as against 1.54% as on 30 September 2020 and 1.88% as on 31 December 2019. The ratio of net NPAs to net advances stood at 0.24% as on 31 December 2020 as against 0.45% as on 30 September 2020 and 1.01% as on 31 December 2019.
AU Bank said GNPA and NNPA would have been 3.3% and 1.3% respectively in the absence of the Supreme Court's interim order. The bank has created additional provisions for these accounts.
The bank's provisions and contingencies soared 607% to Rs 284 crore in Q3 FY21 from Rs 40 crore in Q3 FY20. Provision Coverage Ratio (PCR) (including technical write-offs) improved to 76% as on 31 December 2020 from 46.8% as on 31 December 2019.
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Commenting on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, I believe the worst is behind us, things are going to get better now with the public vaccination in horizon. We as a Bank stood strong in the last 9 months and have performed well enough on all metrics such as Deposit Growth, Liquidity, Asset Quality, Digital Banking, Inclusive Banking, Customer Engagement and Employee Safety & well-being. The accelerated growth of technology adoption has enabled us to offer seamless customer experience. We are working on various digital properties to create a holistic digital Bank. We have a positive outlook towards the growth of our economy, we believe we will grow with it as well.
Total advances as of 31 December 2020 were Rs 30,293 crore, an increase of 14% over 31 December 2019. Total deposits as of 31 December 2020 were Rs 29,708 crore, an increase of 24% over 31 December 2019. Retail deposits (CASA + Retail TD) now at 55% of deposits versus 43% in Q3FY20. CASA ratio at 22% compared with 16% in Q3FY20. The bank's capital adequacy ratio declined to 18.8% in Q3 FY21 from 21.5% in Q2 FY21 and 19.3% in Q3 FY20.
Shares of AU Small Finance Bank were up 0.15% at Rs 870.75. 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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