AU Small Finance Bank shares rally nearly 6% on over 25% YoY growth in deposits, loan portfolio in Q4FY24

AU Small Finance Bank shares rallied nearly 6% on Thursday after the lender reported strong business performance for quarter and year ended March 2024.

In its quarterly business update filed with stock exchanges, AU Small Finance Bank said that its total deposits grew 26% to ₹87,182 crore in the March quarter (Q4FY24) compared to ₹69,365 crore in the year-ago quarter.

Compared to the previous quarter ended December 2023, deposits grew 9%. This was led by strong CASA (current and savings account) mobilisation by the bank, with incremental CASA deposits growing by 10% compared with the previous quarter.

AU Small Finance Bank also reported strong growth in advances across both retail and commercial banking assets, with the lender achieving highest ever disbursement in March 2024.

The bank’s gross advances jumped 25% to ₹73,999 crore in Q4FY24 compared to ₹59,158 crore in Q4FY23. Sequentially, gross advances grew 9% compared with the previous quarter.

The bank’s total gross loan portfolio at the end of March 2024 stood at ₹82,175 crore, growing 28% compared with a year ago.

After the announcement, shares of AU Small Finance Bank Ltd jumped as much as 5.8% to hit an intraday high of ₹639.95 apiece on the National Stock Exchange (NSE) on Thursday. Notably, the stock has rallied 12.5% in the past five trading sessions.

Meanwhile, AU Small Finance Bank also informed exchanges that Fincare SFB’s merger into the bank has become effective from April 1, 2024, after the Reserve Bank of India (RBI) approved it on March 4, 2024.

The deposit rates at Fincare branches have been aligned to AU deposit rates with effect from April 1, 2024, the lender added.