au small finance bank: AU Small Finance Bank Q1 Results: Profit jumps 32% to Rs 268 crore

reported a 32% rise in net profit for the June quarter at Rs 268 crore, on the back of improvement in its net interest income and sharp fall in provisions.

Its net profit was Rs 203 in the year-ago period.

The Jaipur-based lender reported a marginal dip in the quarterly net interest margin at 5.9% from 6% in the year-ago period.

Its net interest income, however, rose 35% to Rs 976 crore against Rs 924 crore.

The bank’s asset quality improved, with the gross non-performing assets ratio falling to 1.96% at the end of June from 4.3% a year back. Net NPAs improved to 0.56% from 2.26%. Its provision coverage ratio rose to 72% from 49% earlier.

The bank’s board on Wednesday also approved a Rs 3000-crore equity raising plan. The bank may go for either private placement or qualified institutions placement (QIP) or preferential allotment or a combination of these.

The bank’s stock rose 1.92% to Rs 576.75 on BSE.

Its assets under management grew 37% year-on-year to Rs 50,161 crore while deposits jumped 48% to Rs 54,631 crore.