AU Small Finance Bank on Thursday reported a 6 per cent rise in its net profit at Rs 201 crore in the April-June quarter of the current fiscal year. The bank had posted a net profit of Rs 190 crore in the corresponding quarter a year ago.
Its profit, excluding profit from sale of equity shares of Avas Financiers Ltd, rose by 48 per cent to Rs 177 crore as against Rs 119 crore, it said in a regulatory filing.
Total income of the company grew to Rs 1,409.91 crore during April-June of 2020-21 as against Rs 1,168. 33 crore in the same period of 2019-20, AU Small Finance Bank said.
Interest income rose by 24 per cent to Rs 1,184 crore as against Rs 957 crore.
However, disbursement declined by 70 per cent to Rs 1,181 crore for the quarter.
The disbursement includes non-fund based credit facilities sanctioned and Rs 246 crore disbursed under Targeted Long Term Repo Operations (TLTRO) -- out of a total limit of Rs 300 crore.
The Jaipur-based lender said that it made provision against the potential impact of COVID-19 to the tune of Rs 140 crore during the quarter.
The overall provisions and contingencies for the reported quarter were of Rs 181.25 crore, higher than Rs 32 crore in the June quarter a year ago.
The bank now carries Rs 278 crore of COVID-19 related provisions which constitutes nearly 1 per cent of the total gross advances and about 10 per cent of complete moratorium book.
On asset front, gross non-performing assets (NPAs) or bad loans fell to 1.69 per cent of gross advances at end-June 2020 from 2.08 per cent by same period of 2019.
Value-wise, the gross NPAs were of Rs 447.12 crore, down from Rs 485.70 crore.
Likewise, the net NPAs came down to 0.62 per cent (Rs 163.19 crore) from 1.25 per cent (Rs 289 crore).
"Complete moratorium has been availed by 11 per cent of our borrowers by value on gross advances as on June 30, 2020," the bank said.
On the recovery trend, the lender said the full EMI recovery has improved to 67 per cent in June from 53 per cent in April.
"Bank continues to perform well enough on all metrics such as deposit growth, extra liquidity buffers, assets quality, digital banking, inclusive banking, customer engagements and employee safety... In Q1FY21, our PAT grew by 48 per cent with continuous declining trend in cost of funds," Sanjay Agarwal, MD and CEO, AU Small Finance Bank, said.
Being in a very uncertain environment, the bank made additional provisions to create extra buffer to build resilience, financial stability and to strengthen its balance-sheet, he said.
Bank's loan assets under management were up by 17 per cent to Rs 30,044 crore as on June 30, 2020, while the deposits jumped by 35 per cent to Rs 26,734 crore.
Stock of AU Small Finance Bank closed at Rs 756.75 apiece on the BSE, up 4.82 per cent from the previous close.
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