*AU Small Finance Bank Ltd.* | *CMP* Rs. 757 | *M Cap* Rs. 23195 Cr | *52 W H/L*
(Nirmal Bang Retail Research)
*Result is above expectations*
Net Interest Income came at Rs. 515.9 Cr vs expectation of Rs. 540 Cr, YoY Rs. 395.6 Cr, QoQ Rs. 554.9 Cr
Non Interest Income came at Rs. 225.8 Cr vs YoY Rs. 210.9 Cr, QoQ Rs. 183.1 Cr
PBP came at Rs. 445.6 Cr vs expectation of Rs. 310.1 Cr, YoY Rs. 290.8 Cr, QoQ Rs. 315.8 Cr
Provisions came at Rs. 181.3 Cr vs YoY Rs. 31.5 Cr, QoQ Rs. 150.6 Cr
The bank made Covid provision of Rs. 140 Cr in addition to that made in Q4FY20 of Rs. 138 Cr taking total Covid provisions to Rs. 278 Cr (1% of AUM and *10% of complete moratorium book*).
Adj. PAT came at Rs. 200.8 Cr vs expectation of Rs. 125.5 Cr, YoY Rs. 190.3 Cr, QoQ Rs. 122.3 Cr
Gross NPA came at Rs. 447.1 Cr vs QoQ Rs. 457.8 Cr at 1.69% vs QoQ 1.68%
Net NPA came at Rs. 163.2 Cr vs QoQ Rs. 217.3 Cr at 0.62% vs QoQ 0.81%
Quarter EPS is Rs. 6.6
Share is trading at P/E 35.8x FY20E EPS and trailing P/Adj BV of 5.3x
Complete Moratorium has been availed by 11% of AUM as on 30th June 2020.
SMA pool, which was Rs. 2,768 Cr as on 29th Feb 2020 has now reduced to Rs. 1,133 Cr as on 30th June 2020.
Overall Collection efficiency improved to 90% in the month of June from 54% in April.