Jaipur-based AU Small Finance Bank on July 22 reported a 44 percent year-on-year (YoY) rise in net profit to Rs 387 crore in the first quarter of the current financial year, up from Rs 268 crore in the year-ago period.The bank’s asset quality saw a little improvement for the quarter. The lender’s gross non-performing assets (GNPAs) stood at 1.76 percent compared with 1.96 percent in the corresponding quarter of the previous fiscal.The net non-performing assets (NNPA) for the quarter stood at 0.55 percent compared with 0.56 percent in the year-ago quarter.In June 2023, the bank reduced its peak deposit rates by 25 basis points across savings and retail term deposits. The retail term deposits saw a growth of 8 percent on a QoQ basis. Its gross advances were up 29 percent YoY to Rs 63,635 crore in Q1FY24 compared to Rs 49,349 crore in Q1FY23.Of the total advances, vehicle loan contributed to 33 percent of the total portfolio while secured business loans (SBL), home loan and commercial banking loans contributed 30 percent, 7 percent and 21 percent, respectively.Sanjay Agarwal, MD and CEO, AU Small Finance Bank said, “The first quarter of FY24 saw an improved macro environment with moderating inflation, narrowing current account deficit and rising foreign exchange reserves. The rural economy also continued to recover and the monsoon is likely to support the credit demand in rural and semi-urban areas. I am quite optimistic about the Indian economy and the banking sector looks poised for a sustained period of growth.”

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