AU Small Finance Bank’s profit inflates by 42% in March quarter

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AU Small Finance Bank’s profit has inflated by 42 percent to Rs 118 crore in the March quarter led by a growth of 50 percent in loans for vehicle purchases.

Net Interest Income, the difference between what it paid for funds and what it earned from lending, reached nearly to Rs 851 crore from Rs 464 crore.

“Capital raise, stable asset quality, adequate liquidity, continued growth momentum and an uptick in yields, cost to income and return ratios were key highlights of the fiscal,” said Sanjay Agarwal, CEO, AU Small Finance.

The credit growth was pushed by well-perceived performance in vehicle loan segment and secured lending portfolios, said the bank in a regulatory filing.

Further, asset quality remained primarily stagnant at gross bad loans at two percent, same as last year quarter.

After receiving the approval from the Reserve Bank of India (RBI), AU Financiers (India) Ltd converted and became AU Small Finance Bank. The bank started its operations in 19 April 2017

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