AU Small Finance Bank Releases Q2FY 23 Results

The Board of Directors of AU Small Finance Bank Limited at its meeting held today approved the financial results for the quarter ended September 30, 2022. Q2FY’23 saw a challenging macro environment where the outlook remained uncertain with risks arising from geo-politics, persistent inflation and the hardening of interest rates globally. Domestically as well, liquidity tightened significantly, and inflationary pressures continued leading to hardening of interest rates. However, the domestic demand held up well and the overall credit environment in the Indian banking sector was resilient during the quarter.

Amidst this backdrop, AU Bank delivered a strong quarter where the Bank continued to make progress on all key parameters be it CASA deposit mobilisation, credit growth, acquisition and engagement in digital products, increase in profitability and margins, or collection efficiencies and asset quality. Deposits grew 7% QoQ to ₹ 58,335 Cr from ₹ 54,631 Cr, with further improvement in CASA ratio to 42 per cent and CASA + Retail Term deposit mix to 73 per cent. Fund-based disbursements were up 2 per cent QoQ at ₹ 8,605 Cr as compared to ₹ 8,445 Cr Q1’FY23 and the Bank witnessed a growth of 6 per cent QoQ in its Gross Advances to ₹ 52,452 Cr in Q2’FY23 as against ₹ 49,349 Cr in Q1’FY23. This was coupled with consistent collection efficiency of 108 per cent for the quarter, resulting in sustained improvement in asset quality ratios. Bank maintains a strong position in Digital services with properties like AU 0101, Video Banking, Credit cards, UPI QR, etc. all of which continue to see strong momentum. Bank’s total balance sheet grow by 10 per cent QoQ and 13 per cent YTD to ₹ 77,878 Cr, and deposits grew by 7 per cent QoQ and 11 per cent YTD to ₹ 58,335 Cr