AU Small Fin Bank posts 15% rise in net profit to Rs 203 crore for June quarter

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AU Small Finance Bank (SFB) on Friday reported a 15% increase in its net profit to Rs 203 crore for the first quarter ended June 30. The bank had reported a net profit of Rs 177 crore in the year-ago quarter.

Its total income during April-June 2021 rose 11% to Rs 1,538 crore, compared with Rs 1,410 crore in the year-ago period, AU Small Finance Bank said in a regulatory filing.

Net interest income jumped 40% to Rs 724 crore from Rs 516 crore, aided by reduction in the cost of funds by 88 basis points and assets under management (AUM) growth, the bank said.

The profit after tax was higher by 15% even as the bank prudently increased contingency buffer, it said.

The bank’s disbursements during the quarter were impacted due to the second wave of the pandemic, but were up 75% from a year ago, partly due to the base effect and gradual recovery seen in June.

Gross non-performing assets (NPAs) reduced sequentially to Rs 1,496 crore (4.3% of gross advances) from Rs 1,503 crore, it added.