AU Small Finance Bank’s net profit rose 44% year-on-year(y-o-y) to Rs 387 crore in the April-June quarter due to growth in its loan book.
Gross advances rose 29% y-o-y to Rs 63,635 crore as on June 30. Of the total advances, vehicle loans formed 33%. Secured business loans, home loans, and commercial banking loans had a 30%, 7% and 21% share of overall loans, respectively.
The lender crossed a milestone of 600,000 live credit cards in the quarter under review. Of the total live cards, 69% cards have been issued to new to bank customers.
The growth in advances boosted net interest income 28% y-o-y to Rs 1,246 crore in the June quarter. Total deposits grew 27% y-o-y to Rs 69,315 crore as on June 30. Current account deposits increased 47% y-o-y, whereas savings account deposits rose 11% . The bank reduced its peak deposit rates by 25 bps across savings and retail term deposits in the quarter. Net interest margin fell to 5.7% in April-June from 5.9% a year ago.
The bank’s gross non-performing asset ratio improved to 1.76% from 1.96% a year ago. Net non-performing asset ratio fell to 0.55% from 0.56%.
“…we have continued to strive to improve the digital adoption by our customers and 45% of our new customer acquisition has been via digital products and channels,” said MD & CEO Sanjay Agarwal.