AU SFB reports gross advances of Rs 90,700 crore for Q1 FY25; deposits at Rs 97,290 crore

AU Small Finance Bank has recorded 4.9% rise in gross advances to Rs 90,700 crore as on 30 June 2024 as compared with Rs 86,478 crore as on 31 March 2024.

Securitised/assigned portfolio and inter-bank participation certificate (IBPC) stood at Rs 9,100 crore as on 30 June 2024 as against Rs 10,012 crore as on 31 March 2024.

Total deposits of the bank declined marginally to Rs 97,290 crore as on 30 June 2024 from Rs 97,704 crore as on 31 March 2024.

CASA ratio was at 33% as on on 30 June 2024 as against 32% as on 31 March 2024.

 

Cost of funds for the June 2024 quarter was 7.03% as compared with 7.10% for the March 2024 quarter.

The management of AU Small Finance Bank said: The bank delivered resilient performance with early progress on implementing each of the articulated strategies, be it focusing on cost of funds, increasing disbursement yields and calibrating portfolio mix, or achieving disbursement targets in a seasonally muted quarter.

Q1FY25 was also the first quarter following amalgamation of Fincare SFB and the merger continues to progress well and remains on schedule without any disruption or surprises. Integration across liabilities, control functions and business segments has been seamless with both teams collaborating to deliver uninterrupted service to the customers while maintaining a focus on business growth.

Pursuant to strong deposit growth in Q4FY24, the Bank carried surplus liquidity into the quarter. Thus, our primary focus in Q1 was to utilise this excess liquidity and reduce our Cost of Funds (CoF) by retiring high-cost deposits, mainly of erstwhile Fincare SFB.

Despite using some excess liquidity during the quarter, Bank continues to carry sufficient liquidity in the form of LCR investments and high-quality liquid non-SLR investments.

The quarter saw uptick in disbursement yields of ~40bps QoQ over the proforma merged disbursement yields, mainly supported by increase in disbursement yields in Wheels and MBL businesses. Additionally, the gross loan portfolio yield for the Bank expanded by approximately 3bps during the quarter over proforma merged yield.

Asset quality continued to follow seasonal trend and remained within the long-term range.

AU Small Finance Bank (AU SFB/AU) is a scheduled commercial bank, a Fortune India 500 Company and the largest Small Finance Bank in the country.

The banks net profit declined to Rs 370.74 crore in Q4 FY24 as against Rs 424.63 crore in Q4 FY23. Total income grew 29.8% YoY to Rs 3,385.12 crore in the quarter ended March 2024.

The scrip fell 3.17% to currently trade at Rs 651.30 on the BSE.

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