AU Small Finance Bank gross advances rise 29% YoY to Rs 63,635 crore in Q1

AU Small Finance Bank said its gross advances rose 29% year on year to Rs 63635 crore as credit demand remained strong with disbursement sustaining across product segments.

Deposits grew 27% to Rs 69315 crore. The bank reduced its peak deposit rates by 25 basis points across savings and retail term deposits.

"The bank had an liquidity coverage ratio of 151% as on March 31, 2023, and thus the focus in Q1’FY24 was to consume this excess liquidity instead of growing high-cost deposits," the bank said in a regulatory filing to stock exchanges.

Its average cost of funds for the first quarter was 29 basis points higher to 6.58%, over the last quarter's 6.29%.

The bank said it would continue with its approach of calibrating liquidity and funding mix with focus on optimising cost of funds and pivot its products and services as a key differentiating factor.

The lender meanwhile saw an uptick in disbursement yields on sequential basis. Asset quality trends continued to be within the range and the bank has not securitised any assets during the quarter, it said