Net profit stood at Rs 581 crore as compared with Rs 503 crore in the year-ago period.
The bank’s net interest margin for the quarter dipped 38 basis points to 5.4%.
“Net interest margins have started to shrink as banks began to transmit the rate cuts,” the bank said in a release filed to the stock exchanges.
Gross non-performing assets ratio worsened to 2.47% from 1.78% seen a year ago. This led to higher provisions at Rs 533 crore for the quarter against Rs 283 crore earlier.
Pre-provision operating profit rose 38% year-on-year at Rs 1,312 crore vs Rs 952 crore. Other income stood at Rs 811 crore, up 59% year-on-year, with the bank booking higher treasury gains of Rs 289 crore as against Rs 40 crore in the corresponding period last year.Net interest income for the quarter under review grew 6% at Rs 2,045 crore over Rs 1,921 crore seen in the year-ago period.AU Bank’s gross loan portfolio expanded 18% year-on-year to Rs 1.18 lakh crore despite the unsecured segments of business witnessing a 23% shrinkage. Its unsecured businesses comprise microfinance and credit cards.
The bank’s total deposits soared 31% year-on-year to Rs 1.28 lakh crore.
