AU Small Finance Bank, based in Jaipur, reported a 17 percent increase in standalone net profit for the September quarter of 2023-24. The bank’s net profit for the same period last year was Rs 343 crore, while it reached Rs 402 crore this year.
The rise in net profit was supported by an improvement in interest income. Total income also saw a significant increase, rising from Rs 2,240 crore to Rs 2,957 crore compared to the same period a year ago, as stated in a regulatory filing by AU Small Finance Bank.
Moreover, the bank’s net interest income showed improvement as it increased to Rs 1,249 crore from Rs 1,083 crore in September 2022. The net interest margin stood at 5.5 percent at the end of September 2023.
In terms of asset quality, AU Small Finance Bank reported a slightly higher gross non-performing assets (NPAs) percentage of 1.91 percent compared to 1.90 percent in the previous year’s September quarter. The net NPAs or bad loans also increased to 0.60 percent from 0.56 percent in the year-ago period.
However, there was a slight decrease in the bank’s Capital Adequacy Ratio, which dropped from 23.3 percent in September 2022 to 22.4 percent at the end of September 2023.
AU Small Finance Bank’s financial performance for the September quarter reflects its ability to generate profits and showcase growth in its interest income. The bank continues to maintain a stable asset quality, with a slight increase in NPAs. Its Capital Adequacy Ratio, although slightly lower, still demonstrates a strong financial position.
These positive results position AU Small Finance Bank as a reliable and competitive player in the banking industry.
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