AU Small Finance Bank Q1 Profit Surges 30% to Rs 502 cr

New Delhi, Jul 25 (PTI) AU Small Finance Bank on Thursday reported a 30 per cent jump in its net profit to Rs 502 crore for the first quarter ended June 30.

The Jaipur-based lender had earned a net profit of Rs 387 crore in the year-ago period.

During the quarter, the bank's total income increased to Rs 4,315 crore against Rs 2,773 crore a year ago, Au Small Finance Bank said in a regulatory filing.

Interest income grew to Rs 3,769 crore during the period under review from Rs 2,458 crore in the corresponding quarter a year ago.

The board has also approved for making an application to the Reserve Bank of India (RBI) for the transition from a Small Finance Bank to Universal Bank pursuant to guidelines for 'on tap' licensing of universal banks in the private sector dated August 1, 2016, and circular on voluntary transition to universal banks dated April 26, 2024, it said.

The board has constituted a Committee of Directors to vet the application for submission to the RBI, it said.

Asset quality of the bank marginally deteriorated, with gross non-performing assets (NPAs) rising to 1.78 per cent of gross advances as of June 30, 2024, from 1.76 per cent by the end of the first quarter of the previous fiscal.

Its net NPAs also came down to 0.63 per cent of the advances from 0.55 per cent at the end of the first quarter of last year.

As a result, provisions (other than tax) and contingencies increased to Rs 319 crore from Rs 33 crore earmarked during the same quarter a year ago.

The capital adequacy ratio (CRAR) declined to 20.11 per cent compared to 21.46 per cent on June 30, 2023.