AU Small Finance Bank Sees Profit Rise Amid Asset Quality Concerns

AU Small Finance Bank recorded a 16% rise in net profit to Rs 581 crore during the first quarter. This marks an increase from Rs 503 crore in the same period last year. Total income surged to Rs 5,189 crore up from Rs 4,278 crore a year ago, as per the bank's regulatory filing.

Interest income saw an improvement to Rs 4,378 crore compared to Rs 3,769 crore in the preceding fiscal period. The net interest incomes rose to Rs 2,045 crore from Rs 1,921 crore. Additionally, the operating profit increased to Rs 1,312 crore, up from Rs 952 crore in the corresponding quarter of the past year.

Despite these figures pointing to growth, the bank's asset quality experienced deterioration, with gross NPAs increasing to 2.47% from 1.78%. Net NPAs rose to 0.88% from 0.63%. Consequently, the bank's provisions doubled to Rs 533 crore, and the capital adequacy ratio fell to 19.42% from 20.11%. CEO Sanjay Agarwal emphasized a focus on sustainable growth amidst these challenges.

(With inputs from agencies.)