AU SFB Q3 Results: PAT rises 30% to Rs 393 cr on improved income

AU Small Finance Bank reported a 30% rise in net profit at Rs 393 crore in the December quarter over Rs 302 crore in the year- ago period, backed by a healthy rise in income and a fall in provisioning requirements.

Its net interest margin for the quarter remained almost flat at 6.2% against 6.3% in the year-ago period. Net interest income rose 41% at Rs 1,153 crore against Rs 820 crore.

The bank's total income rose 36% at Rs 2,413 as compared with Rs 1,773 crore. Provisions fell 41% at Rs 33 crore against Rs 56 crore.

Its asset quality improved with gross non-performing assets ratio falling to 1.81% at the end of December against Rs 2.6% a year back. Net NPA was at 0.51% against 1.29%.

Provisioning coverage ratio improved to 72% with additional provisioning in the form of contingency provision of Rs 98 crore and restructured provision of Rs 127 crore, the bank said.

The lender's gross advances rose 38.4% year-on-year to Rs 56,335 crore with 90% of it being in retail. It securitised asset portfolio worth Rs 1,164 crore during the third quarter.