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This latest figure also reflects a 13.5% rise from the net profit of ₹503 crore recorded in the June 2024 quarter.
Total income for the quarter surged by 55% to ₹4,549 crore, up from ₹2,937 crore a year earlier. For the first half of the fiscal year, AU Small Finance Bank posted a net profit of ₹1,074 crore, representing a 36% increase from ₹789 crore during the same period last year.
“The first half of this financial year experienced some discontinuity in business momentum due to persistent inflation, general elections, various state elections, and unusual weather patterns in August. However, we have begun to see early signs of a pickup in economic activity over the past 3-4 weeks and remain optimistic about an improved operating environment in the second half,” saicd Sanjay Agarwal, MD & CEO, AU Small Finance Bank.
Agarwal highlighted the bank’s consistent performance amidst challenging macro conditions, noting, “We achieved sustainable growth in assets and profitability, with double-digit deposit growth quarter-on-quarter and stable cost of funds being the standout features of the quarter. We aim to implement our articulated strategy of AU@2027 by focusing on our margins, sustaining fee income growth, and calibrating operating expenses.”
In September, AU Small Finance Bank applied to the Reserve Bank of India for voluntary transition to a universal bank, which is expected to enhance its brand perception of safety and trust, facilitating the next phase of growth and establishing a “forever bank.”
For the quarter under review, the bank’s Net Interest Margin (NIM) improved by 5 basis points to 6.1%, compared to 6.05% in the June quarter. In the first half of the current fiscal year, the net interest margin stood at 6.1%, up from 5.6% in the same period last fiscal year.
The bank’s gross loan portfolio surpassed ₹1 lakh crore, reaching ₹1,05,031 crore, while total deposits also exceeded ₹1 lakh crore, touching ₹1,09,693 crore. AU Small Finance Bank now serves over 10.9 million customers through a network of 2,408 touchpoints across 21 states and four Union Territories, with a workforce of around 48,000 employees. The shareholders’ funds of the bank have now surpassed ₹16,000 crore.
However, the bank did experience a slight increase in its Gross Non-Performing Assets (GNPA), rising to 1.98% from 1.78% in the previous quarter, while Net Non-Performing Assets (NNPA) rose to 0.75% from 0.63% in the same period.