The bank’s net interest margin — a key profit metric — rose to 5.8% for the quarter from 5.5% in the corresponding three-month last year.
AU’s gross non-performing assets ratio fell 42 basis points (bps) to 1.99% at the end of September. This helped in 25% lower provision at Rs 359 crore against Rs 481 crore. Net NPA ratio improved by 7 bps to 0.81%. Annualised credit cost improved by 45 bps to 0.8% from 1.2% over the year.
One basis point is equal to one-hundredth of a percentage point.
The bank, which is in the process of transforming itself into a universal lender, saw its pre-provision operating profit grow around 28% year-on-year at Rs 1514 crore for the second quarter over Rs 1210 crore a year ago. Net interest income rose 32% at Rs 2,820 crore against Rs 2,144 crore in the year prior.
Its gross loan portfolio grew 25% year-on-year to Rs 1.54 lakh crore while total deposits expanded 29% to Rs 1.71 lakh crore. Founded in 1996 as a vehicle financier, AU is now India’s largest small finance bank.
