AU Small Finance Bank earnings unchanged at Rs 203 cr; Net interest income up 40%

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The Jaipur-based AU Small Finance Bank’s net income for the April-June quarter was unchanged year-over-year at Rs 203 billion.

However, net interest income rose 40 percent year over year to Rs.724 billion, aided by a reduction in the cost of capital. Operating costs rose nearly 50 percent year-over-year to Rs.174 billion due to an increase in the workforce and investments in several digital initiatives.

While provisions were unchanged year-on-year at Rs 451 billion, they increased sequentially by 21 percent. The lender made provisions of Rs.120 billion during the quarter to help bolster the balance sheet.

The lender’s asset quality decreased sequentially by Rs 7 billion to Rs 1,496 billion, and the gross non-performing assets ratio (GNPA) remained unchanged sequentially at 4.3 percent of gross advances. The bank said collections saw a sharp decline as the second wave of Covid-19 flattened out. The collection efficiency was 114 percent in June 2021.

The lender’s restructured loan book was Rs.1,265 billion, or 3.6 percent of gross advances.

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