Au Small Finance Bank announced Q2FY24 results: Pre-provisioning operating profit up 30% YoY to Rs 648 crore; Net interest income up 15% to Rs 1,249 crore and Net Interest Margin for Q2FY24 is at 5.5% Overall deposits have now crossed Rs 75,000 crore mark in this quarter growing 30% YoY and 9% QoQ CASA deposit grew by 6% QoQ to Rs 25,666 crore; CASA ratio stands at 34% and CASA + Retail TD mix at 66% Bank has now crossed Rs 1,00,000 crore mark of balance sheet including securitized book Bank acquired 3.65 lakh customers in Q2FY24 of which 45% was via digital products and channels Total credit cards crossed 7 Lacs whereas deposits sourced via Video Banking crossed Rs 1,400 crore Gross advance up 24% YOY and 2% QoQ to Rs 65,029 crore - a growth of 10% since March’23; The Bank securitised asset portfolio worth Rs 2,922 crore during Q2FY24 GNPA% at 1.91% increased by 1 bps YoY, NNPA% at 0.60%; Standard restructured advances declined to 0.8% from 1.0% sequentially Provisioning Coverage Ratio (PCR) remain stable at 69% (73% including technical write-off); Bank is carrying additional provision of Rs 96 crore against contingency and standard restructured assets Bank has hiked FD rates and SA rates up by 25 basis points in selective buckets during the quarter Bank launched “Zenith+ Credit Card”, a super-premium Metal Credit Card Bank has added Max Life Insurance, Bajaj Alliance Life Insurance and Star Health Insurance as Bancassurance partner to further strengthen Bank’s third-party product offering to its customers Commenting on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, “The global environment remains challenging with uncertainties around geo-politics, supply chain disruptions and inflation continuing to put persistent pressure on interest rates. The Indian economic environment looks strong and resilient and continues to provide a multitude of growth opportunities across various sectors. However, challenges around inflation, liquidity and disruptions in weather patterns remain, warranting caution as a lender and we remain watchful and responsive in caliberating our strategy. In this backdroup, our performance in Q2FY24 was resilient and sustainable with growth across deposits, digital and advances. This resilience is further complemented by the positive outlook in AU markets, where there are promising prospects for growth and market penetration. Our key strategic focus is on building lowcost retail deposits, even in the current environment of elevated costs and intense competition. Our newely created 'Swadesh Banking' group is focused on furthering our financial inclusion strategy by penetrating deeper in rural India, where a significant unbanked population resides. Additionally, our new brand campaign “Soch Badlo aur Bank Bhi” will continue to establish a robust brand presence and foster top-of-mind recall. While being watchful, I am quite optimistic about the Indian economy in the long term and the banking sector looks poised for sustained period of growth. The business is excelling on all fronts, instilling great confidence in us to affirm our FY24 guidance set forth at the start of this fiscal year and we continue to focus on sustainable growth, aiming to further fortify our balance sheet.” Result PDF