AU Small Finance Bank share price jumps 11% on back of healthy Q1 internals - Check stock details here

Amid strong first quarter internals, AU Small Finance Bank shares spurted near 11 per cent to Rs 1,142 on the BSE intraday trade on Tuesday. It reported stable absolute gross non-performing assets (GNPA) in the first quarter of FY22 on a sequential basis.

The GNPA was broadly stable in the first quarter as net additions (slippages net of recoveries and upgrades) to GNPA fell by Rs 8 crore, the bank said in a filing to exchanges. 

The GNPA ratio, effectively, is expected to stay around 4.3 per cent, which is stable quarter-on-quarter. While the total restructured loans increased to around 3.8 per cent versus1.8 per cent in FY21.

The stock, at around 01:30 pm, was trading over nine per cent higher to Rs 1124 per share on the BSE, as compared to a 0.36 per cent rise in the S&P BSE Sensex.

The total assets under management (AUM) of AU Small slipped by three per cent QoQ basis, but were up 22 per cent year on year (YoY) at Rs 36,635, it said in its provisional performance review for the quarter ended on June 30, 2021 (Q1FY22).

"Furthermore, on a gross advance basis, the bank witnessed a 2 per cent QoQ decline (up 31 per cent YoY). The sequential decline was primarily on account of lockdowns in core states/territories, which resulted in subdued disbursements at Rs 1,890 crore (74 per cent QoQ decline)," it said.

AU Small Finance’s total deposits grew at 38 per cent YoY and at three per cent QoQ to Rs 37,014 crore on the liability front. The bank said, it was primarily led by robust CASA (current account and saving account) growth of 157 per cent YoY (16 per cent QoQ).

The CASA ratio has improved to 26 per cent against 23 per cent in Q4FY21 and 14 per cent in Q1FY21. Cost of funds too improved 90 basis points (bps) YoY (20bps QoQ) to 6.3 per cent.

Trading volumes on the counter jumped over nine-fold with a combined 5.96 million shares have changed hands on the NSE and BSE till the time of writing of this report.