Net interest income (NII) stood at Rs 1,974 crore in second quarter of FY25, up 58.05% YoY. Net interest margin (NIM) stood at 6.1% during the quarter.
Pre-provisioning profit in Q2 of FY25 was at Rs 1,132 crore, registering a growth of 80% YoY. Provisions soared 292.63% YoY to Rs 373 crore in the quarter ended 30 September 2024.
The bank's total deposits increased 44.82% YoY to Rs 1,09,693 crore. CASA deposits increased by 38.4% YoY to Rs 35,521 crore compared to Rs 25,666 crore in Q2 FY24; CASA ratio was at 32%.
On the asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 1,901.69 crore as on 30 September 2024 as against Rs 1,244.75 crore as on 30 September 2023.
The ratio of gross NPAs to gross advances was at 1.98% as on 30 September 2024 as compared to 1.91% as on 30 September 2023.
The ratio of net NPA to net advances stood at 0.75% as on 30 September 2024 as against 0.60% as on 30 September 2023. Provisioning coverage ratio (PCR) remained stable at 82%.
Sanjay Agarwal, Founder, MD & CEO, of AU Small Finance Bank, said, “First half of this financial year saw some discontinuity in business momentum with persistent inflation, general elections and various state elections as well as heat wave and unusual heavy rain in August. We have started to see early signs of pickup in economic activity over the last 3-4 weeks and remain optimistic of an improved operating environment in H2 as consumer confidence, rural demand and private investment picks up.
Amidst this macro backdrop, AU SFB delivered another quarter of consistent performance across most of the parameters with sustainable growth in our assets and profitability. Our double-digit deposit growth on QoQ basis with stable cost of funds remains the highlight of the quarter. We aim to deliver all our articulated strategy of AU@2027 by focusing on our margins, sustained fee income growth and calibrating operating expenses of the book.
This quarter, we applied to RBI for voluntary transition to universal bank which will further Improve our brand acceptance with higher perception of safety and trust and thereby enable us for the next phase of growth and buildout of a ‘forever bank’.”
AU Small Finance Bank (AU SFB/AU) is a scheduled commercial bank, a Fortune India 500 Company and the largest Small Finance Bank in the country.