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AU Small Finance Bank shares rally over 9 percent on strong Q3 earnings

Updated : January 23, 2020 11:05 AM IST

At 10:55 am, the shares were trading 7.74 percent higher at Rs 955.30 per share on the BSE.

On an intraday basis, the stock price touched its 52-week high of Rs 969.05 apiece.

The bank reported doubling of its net profit to Rs 190.19 crore for the quarter ended December 2019.

AU Small Finance Bank's share price rallied over 9 percent intraday on Thursday after the private lender reported strong net profit in the third quarter this financial year.

At 10:55 am, the shares were trading 7.74 percent higher at Rs 955.30 per share on the BSE while on an intraday basis, the stock price touched its 52-week high of Rs 969.05 apiece.

The bank reported doubling of its net profit to Rs 190.19 crore for the quarter ended December 2019, helped by higher income. The company clocked a net profit of Rs 95.33 crore during the same period a year ago.

Pre-provision operating profit during the quarter grew 75.1 percent to Rs 312.84 crore from Rs 178.66 crore year-on-year. Net interest income in Q3FY20 rose 46 percent to Rs 507 crore as against Rs 348 crore YoY, while net interest margin (NIM) was at a 10-quarter high of 6.79 percent.

Loan asset under management as on December 2019 rose 37.2 percent to Rs 29,867 crore while share of retail AUM rose to 81 percent as against 77 percent in December 2018.

Asset quality was stable as gross non-performing assets (GNPA) as a percentage of gross advances during the quarter under review fell 1.88 percent from 2.01 percent quarter-on-quarter, while net NPA declined to 1.01 percent from 1.14 percent QoQ.

Gross NPA stood at Rs 503.99 crore and net NPAs during the quarter were Rs 268.13 crore. Provisions were at Rs 40.1 crore, up 23.6 percent YoY and down 34.3 percent on quarter on quarter basis.

“Amidst slowing macro, our steady growth and improving asset quality is an outcome of our secured lending vintage, diversified product mix, growth opportunities in our core markets and bank pull,” said Sanjay Agarwal, managing director and CEO of AU Small Finance Bank.

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AU Small Finance Bank shares rally over 9 percent on strong Q3 earnings

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