AU Small Finance Bank reported a net profit of Rs 346 crore in Q4 FY22 as against a net profit of Rs 169 crore in Q4 FY21.
Net interest income (NII) during the quarter increased by 43% YoY to Rs 937 crore as compared with the same period last year. Net interest margin (NIM) was at 6.3% in Q4 FY22 as against 5.7% in Q4 FY21.
The bank's operating profit rose 40% to Rs 482 crore in Q4 FY22 from Rs 344 crore in Q4 FY21.
While the bank did not make any provisions for Covid-19 impact, other provisions declined by 37% YoY to Rs 93 crore during the period under review.
"Bank has created floating provisions of Rs 41 crore from the current quarter P&L - this will further strengthen the balance sheet, acting as a counter-cyclical buffer, to be utilised with prior approval of RBI, AU Bank said in a statement.
Profit before tax in Q4 FY22 stood at Rs 389 crore, up by 99% from Rs 196 crore in Q4 FY21. Tax expenses increased by 59% to Rs 43 crore in Q4 FY22 over Q4 FY21.
The bank's gross non-performing assets (NPAs) stood at Rs 924 crore as on 31 March 2021 as against Rs 1,058 crore as on 31 December 2021 and Rs 1,503 crore as on 31 March 2020.
The ratio of gross NPAs to gross advances stood at 1.98% as on 31 March 2021 as against 2.60% as on 31 December 2021 and 4.25% as on 31 March 2020.
The ratio of net NPAs to net advances stood at 0.50% as on 31 March 2021 as against 1.29% as on 31 December 2021 and 2.18% as on 31 March 2020.
AU Bank recorded 3% decline in net profit to Rs 1,130 crore on a 37% rise in net interest income to Rs 3,234 crore in FY22 over FY21. The growth in NII was aided by reduction in CoF by approximately 88bps YoY and AUM growth of 27% YoY.
While deposits increased by 46% to Rs 52,585 crore, advances rose by 33% to Rs 46,095 crore as on 31 March 2022 as compared with the year ended on 31 March 2021.
Total CRAR as on 31 March 2022 was 21%, as against minimum requirement 15%. Tier-I capital ratio as on 31 March 2022 was 19.7%, as against minimum requirement 7.5%.
The bank's board has approved a bonus issue of 1 equity share for every 1 equity share held by the shareholders as on a record date (to be determined by the board).
The board of directors of the bank has recommended a dividend of Re 1 per equity share on pre-bonus share capital out of net profit for the year ended 31 March 2022.
The board has approved the appointment of Kamlesh Shivji Vikamsey, senior partner of Khimji Kunverji & Co. LLP, as the non-executive independent director (additional director) on the board of the bank with effect from 25 April 2022, for a period of 3 years.
Sanjay Agarwal, MD & CEO, AU Small Finance Bank said: Our financial performance in the current quarter has been quite strong and we have used the headroom available, judiciously, to secure our future by tightening our provisioning policy, increasing our coverage ratio, creating floating provision and expanding our Board.
We remain watchful regarding risks around inflationary pressures and geo-political risks and Covid, and remain cautiously optimistic in our approach.
AU Small Finance Bank is a scheduled commercial bank. As on 31 March 2022, the bank had operations across 919 banking touchpoints, serving 27.5 lakh customers in 18 States & 2 Union Territories.
The scrip fell 3.84% to currently trade at Rs 1361.60 on the BSE.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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