AU Small Finance Bank Q2 profit jumps 53% to Rs 858 crore

What happened: AU Small Finance Bank reported a 53% jump in Q2 profit to Rs 858 crore, with net interest margin rising to 5.8% from 5.5% a year earlier. Key numbers: Profit Rs 858 crore, up 53%. NIM 5.8% vs 5.5%. Gross NPA 1.99%, down 42 bps. Provisions Rs 359 crore vs Rs 481 crore. Net NPA 0.81%. PPOP Rs 1514 crore, up 28%. NII Rs 2,820 crore, up 32%. Gross loans Rs 1.54 lakh crore, up 25%. Why it matters: Lower gross NPAs helped cut provisions by 25%, and annualised credit cost improved to 0.8% from 1.2%. The bank is in the process of transforming itself into a universal lender.

AU Small Finance Bank reported a 53% jump in Q2 profit to Rs 858 crore, with net interest margin rising to 5.8% from 5.5% a year earlier.

Lower gross NPAs helped cut provisions by 25%, and annualised credit cost improved to 0.8% from 1.2%. The bank is in the process of transforming itself into a universal lender.