Kolkata: AU Small Finance Bank reported a 16% year-on-year rise in first quarter net profit backed by higher treasury earnings offsetting the adverse impact of asset quality stress.
Net profit stood at Rs 581 crore as compared with Rs 503 crore in the year-ago period.
The bank's net interest margin for the quarter dipped 38 basis points to 5.4%.
"Net interest margins have started to shrink as banks began to transmit the rate cuts," the bank said in a release filed to the stock exchanges.
Gross non-performing assets ratio worsened to 2.47% from 1.78% seen a year ago. This led to higher provisions at Rs 533 crore for the quarter against Rs 283 crore earlier.
Pre-provision operating profit rose 38% year-on-year at Rs 1,312 crore vs Rs 952 crore. Other income stood at Rs 811 crore, up 59% year-on-year, with the bank booking higher treasury gains of Rs 289 crore as against Rs 40 crore in the corresponding period last year.
Net interest income for the quarter under review grew 6% at Rs 2,045 crore over Rs 1,921 crore seen in the year-ago period.
AU Bank's gross loan portfolio expanded 18% year-on-year to Rs 1.18 lakh crore despite the unsecured segments of business witnessing a 23% shrinkage. Its unsecured businesses comprise microfinance and credit cards.
The bank's total deposits soared 31% year-on-year to Rs 1.28 lakh crore.
Net profit stood at Rs 581 crore as compared with Rs 503 crore in the year-ago period.
The bank's net interest margin for the quarter dipped 38 basis points to 5.4%.
"Net interest margins have started to shrink as banks began to transmit the rate cuts," the bank said in a release filed to the stock exchanges.
Gross non-performing assets ratio worsened to 2.47% from 1.78% seen a year ago. This led to higher provisions at Rs 533 crore for the quarter against Rs 283 crore earlier.
Pre-provision operating profit rose 38% year-on-year at Rs 1,312 crore vs Rs 952 crore. Other income stood at Rs 811 crore, up 59% year-on-year, with the bank booking higher treasury gains of Rs 289 crore as against Rs 40 crore in the corresponding period last year.
Net interest income for the quarter under review grew 6% at Rs 2,045 crore over Rs 1,921 crore seen in the year-ago period.
AU Bank's gross loan portfolio expanded 18% year-on-year to Rs 1.18 lakh crore despite the unsecured segments of business witnessing a 23% shrinkage. Its unsecured businesses comprise microfinance and credit cards.
The bank's total deposits soared 31% year-on-year to Rs 1.28 lakh crore.
