AU Small Finance Bank profit flat at Rs 203 cr; net interest income up 40%
Jaipur-based AU Small Finance Bank’s net profit in April-June quarter remained flat year-on-year at Rs 203 crore.
Net interest income, however, was up 40 per cent YoY to Rs 724 crore, aided by a reduction in the cost of funds. Its operation cost increased by almost 50 per cent YoY to Rs 174 crore due to an increase in employee base, as well as investments in several digital initiatives.
While provisions remained flat YoY at Rs 451 crore, sequentially, it went up by 21 per cent. The lender made contingency provisions of Rs 120 crore during the quarter to strengthen the balance sheet.
Asset quality of the lender reduced sequentially by Rs 7 crore to Rs 1,496 crore and gross non-performing assets (GNPA) ratio remained flat sequentially at 4.3 per cent of gross advances. The bank said collections saw a sharp pullback as the second wave of Covid-19 flattened. Collection efficiency was at 114 per cent in June 2021.
The restructured loan book of the lender stood at Rs 1,265 crore, or 3.6 per cent of gross advances.
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