AU Small Finance Bank Limited's deposits at Rs. 69315 crores as of June 30, 2023

AU Small Finance Bank Limited has announced the business update for the period ended June 30, 2023 i.e., Q1 FY2023-24.

Total deposits of bank stood at Rs. 69,315 crores as of June 30, 2023 compared to Rs. 54,631 crores as of June 30, 2022, registering a growth of 27% YoY.

Gross Advances was at Rs. 63,635 crores as of June 30, 2023 as against Rs. 49,349 crores as of June 30, 2022, a growth of 29% YoY.

Average cost of funds (COF) for Q1'FY24 was 6.58%, an increase of 29 basis point (bps) over COF of Q4'FY23 at 6.29%

Management Commentary - Q1'FY24 saw gradual improvement in inflationary pressures amidst resilient macro-economic indicators. However, the interest rate continues to remain elevated. Amidst this backdrop, Bank delivered consistent performance across business parameters leading to a steady start for the financial year 2023-24. Some key operating highlights for Q1'FY24 were as follows:

- The Bank had an LCR of 151% as on March 31, 2023, and thus the focus in Q1'FY24 was to consume this excess liquidity instead of growing high-cost deposits. Accordingly, in June'23, the Bank reduced its peak deposit rates by 25 basis points across savings and retail term deposits. The retail term deposits still saw a growth of 8% on QoQ basis. However, the CASA deposits de-grew owing to outflow from one large transacting government savings account in normal course of business.

- Bank will continue with its approach of calibrating liquidity and funding mix with focus on optimising cost of funds and pivot its products and services as a key differentiating factor.

- Credit demand remained strong with disbursement sustaining across product segments and the Bank saw an uptick in disbursement yields on a QoQ basis. Asset quality trends continued to be within the range and the Bank has not securitised any assets during the quarter.

- Bank continues to invest in its digital businesses. Notably, Credit card business has now reached 6 Lac+ live credit cards with monthly spend crossing ₹ 1,200 Cr. in June'23. During the quarter, the Bank opened 49,000+ savings account via Video banking + AU 0101.

- The Bank has started the project to operationalise the Authorised Dealer Category-I (AD Cat-I) license received in the month of April, 2023.

Note: The above information for Q1'FY24 is provisional and being released ahead of the official announcement of the financial results for the quarter ended June 30, 2023 and is subject to review and approval by the Audit Committee, Board of Directors and Statutory Auditors of the Bank.

Shares of AU Small Finance Bank Limited was last trading in BSE at Rs. 777.60 as compared to the previous close of Rs. 760.20. The total number of shares traded during the day was 35359 in over 1717 trades.

The stock hit an intraday high of Rs. 780.95 and intraday low of 753.25. The net turnover during the day was Rs. 27116374.00.

Source : Equity Bulls

Keywords

AUSmallFinanceBank INE949L01017 Q1FY24 BusinessUpdate Deposits Loans Advances