AU Small Finance Bank Q4FY22 and Year Ended result : Profit up 104.81% YoY, NPA at 0.5% from 2.18%

Bank’s Asset quality improved significantly with GNPA at 2% vs 4.3% as on 31-Mar’21 • Net NPA stood at 0.5% of net advances as against 2.2% as on 31-Mar’21 • Provision coverage ratio at 75% against 50% as on 31-Mar’21

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Founded in Jaipur in 1996 as Au Financiers, now as AU Small Finance Bank is a non-deposit taking Non-Banking Finance Company (NBFC), it effectively worked on funding economic growth, especially for the under-served and un-served low & middle-class individuals. For over two decades we provided secured funding to customers largely in Vehicle Loan, Business Loan and Housing Loan segments while organically spreading our geographical presence. The company has posted its Q4FY22 and year ended financial results today, the details are as below :

(I) Audited Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹1,978.40 crore in the quarter ended on March 31, 2022 as against ₹1,539.53 crore in the corresponding quarter ended last year on Mar 31, 2021, increased by 28.50%.

The company has posted a consolidated Net Profit of ₹346.07 crore in the quarter ended on March 31, 2022 as against ₹168.97 crore in the corresponding quarter ended in last year on Mar 31, 2021. The PAT surges up by 104.81%.

The status of the EPS of the company stood at ₹10.92 as on March 31, 2022 compared to the previous quarter ended on Mar 31, 2021 which was ₹5.45, up by 103.6%.

₹*Mar 31, 2022 (Q4FY22)Dec 31, 21 (Q3FY22)Mar 31, 21 (Q4)
Total Income1,978.401772.091,539.53
Total Expenses1496.071313.661195.20
PBT /(Loss)389.10402.96196.03
Total Tax /(credit)43.03100.4127.05
PAT /(Loss)346.07302.04168.97
*figures are in Crores

(II) Audited Consolidated Financial Result details for the Year Ended :

The company has reported, a consolidated Total Income of ₹6915.42 crore in the financial year ended on March 31, 2022 as against ₹6370.98 crore for the financial year ended on Mar 31, 2021, increased by 8.54%.

The company has posted a consolidated Net Profit of ₹1129.83 crore in the financial year ended on March 31, 2022 as against ₹1170.68 crore for the financial year ended on March 31, 2021. The PAT surges down by 3.48%.

The status of the EPS of the company stood at ₹35.69 as on March 31, 2022 compared to the previous year ended on March 31, 2021 which was ₹37.86, down by 5.73%.

₹*Mar 31, 2022 (FY22)Mar 31, 2021 (FY21)
Total Income6915.426370.98
Total Expenses5100.384243.03
PBT /(Loss)6454.072127.94
Total Tax /(credit)324.23287.82
PAT /(Loss)1129.831170.68
*figures are in Crores

(III) Key Highlights about the Performance :

Full year FY2022 highlights :
Business
• Bank’s total balance sheet grew by 34% YoY to ₹ 69,078 Crore
• Deposits grow by 46% YoY to ₹ 52,585 Cr; CASA at 37% as against 23% as on 31-Mar’21
• Cost of Funds for declined by 88 bps YoY to 5.9%
• Loan AUM grew by 27% YoY to ₹ 47,831 Cr; CD ratio at 88%
• 88% of loan book is retail in nature; NII at ₹ 3,234 Crore, up 37% YoY

Q4’FY22 financial results
• Net Interest Margin (NIM) at 6.3% vs. 5.7% in Q4’FY21
• ROA for Q4’FY22 stood at 2.2% and ROE at 18.9%
• Cost of funds reduced to 5.7% vs. 6.5% in Q4’FY21; Incremental CoF at 5.3% for Q4’FY22

(IV) Asset Quality :

Bank’s Asset quality improved significantly with GNPA at 2% vs 4.3% as on 31-Mar’21
• Net NPA stood at 0.5% of net advances as against 2.2% as on 31-Mar’21
• Provision coverage ratio at 75% against 50% as on 31-Mar’21
• Collection efficiency averaged 106% for full year FY22

Apart from provision of ₹ 653 Crore against GNPA pool, Bank has, additionally, maintained following provision buffer –

  • Provision against restructured book at ₹ 192 Crore (16% of restructured book)
  • Contingency provision of ₹ 157 Crore (0.34% of advances)
  • Floating provision of ₹ 41 Crore (0.09% of advances)
  • Standard provisions of ₹ 139 Crore (0.30% of advances)

Q4FY22Q3FY22Q4FY21FY22FY21
Gross NPA ₹*924.371057.561502.82
Gross NPA %1.982.64.25
Net NPA ₹*230.84520.17755.45
Net NPA %0.501.292.18
RoA (return on asset)%0.540.540.341.872.50
*₹ are in Crores

(V) Capital Adequacy :

Bank remains well capitalized with
1. Total CRAR at 21.0% against minimum requirement 15%
2. Tier-I capital ratio of 19.7% against minimum requirement 7.5%

The stock of AU Small Finance Bank last hit in BSE,

  • Intraday High of ₹ 1421.00
  • Intraday low of ₹ 1379.30