On Thursday, AU Small Finance Bank reported an increase of over two-and-a-half times in its net profit. The increase was about Rs 479 crore for the third quarter that ended December 2020. AU Finance was seen posting a net profit of Rs 190 crore in the quarter of 2019.
The total net income during the quarter period of October to December also increased by 94 percent to Rs 1,297 crore from Rs 668 crore a year ago, according to AU Small Finance Bank. It was also reported that the net interest income had grown by 25 percent to Rs 633 crore.
For the nine-months that ended in December 2020, the net profit had risen by 81 percent to Rs 1,002 crore and the total net income grew by 54 percent to Rs 2,885 crore.
According to AU Small Finance Bank, this kind of strong performance has happened because the growth has returned to normalcy after a large period of unrest caused by the pandemic.
Due to the much more normalized environment and the re-emergence of growth, the bank is now able to move ahead with an annual performance appraisal or increments for the years 2019-20 for all employees in this quarter. The lender also said that the bonus had already been paid out in the third quarter of 2020-21.
Disbursements grew by 34 percent year-on-year during the quarter of December 2020. It was mostly driven by growth in demand across many key segments, according to reports. Asset under management was reportedly at Rs 33,222 crore, with a growth of 11 percent y-o-y and 9 percent quarter-on-quarter. Retail AUM, however, continues to dominate at nearly 91 percent.
The bank’s gross non-performing assets (NPAs) were at 1 percent and net NPA at 0.2 percent by the end of the quarter in December 2020. The provision coverage ratio (PCR), on the other hand, stood at 76 percent.
AU Small Finance Bank also said the demand has normalized in most aspects during the quarter that ended in December 2020, and that it is expected to be significantly better in the next quarter.
