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  5. AU Small Finance Bank drops nearly 5% as Q1 business growth remains muted

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AU Small Finance Bank drops nearly 5% as Q1 business growth remains muted

Upstox
By Upstox News Desk

2 min read | Updated on July 08, 2024, 14:45 IST

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SUMMARY

AU Small Finance Bank's total deposits in the April-June period stood at ₹97,290 crore, down 0.4% as compared to ₹97,704 crore in the preceding January-March quarter, as per the business update shared by the microlender.

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AUBANK
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Year-to-date, AU Small Finance Bank shares have declined by around 18%

Year-to-date, AU Small Finance Bank shares have declined by around 18%

Shares of AU Small Finance Bank slid nearly 5% during the trading session on Monday, July 8, as the business update shared by the microlender for the first quarter pointed towards a muted growth.

On the National Stock Exchange (NSE), the stock hit a low of ₹639.1 apiece, which was down 4.9% as against the last closing price.

At 2:20 pm, the shares marginally recovered and were trading 4.68% lower at ₹641 apiece.

Also Read: Microlenders in focus after RBI shares roadmap to convert SFBs into universal banks

Muted Q1 growth

The decline in stock was preceded by the release of Q1 business update on Friday, July 5, after the market hours. As per the data shared by the lender, its total deposits in the April-June period stood at ₹97,290 crore, down 0.4% as compared to ₹97,704 crore in the preceding January-March quarter.

The current account and saving account (CASA) deposits rose 1.8% sequentially to ₹32,034 crore in Q1 FY25, as compared to ₹31,456 crore in Q4 FY24. The CASA ratio improved slightly to 33% from 32%.

The gross loan portfolio came in at ₹99,800 crore, up 3.4% as against ₹96,490 crore in the March 2024 quarter. Within the loan portfolio, gross advances climbed 4.9% sequentially to ₹90,700 crore in the June 2024 quarter, from ₹86,478 crore in the preceding quarter.

The Q1 business update is a precursor to the financial results for the three-month period ended June 30, 2024. In the preceding March quarter, AU Small Finance Bank had reported a 13% year-on-year drop in net profit to ₹371 crore.

The microlender's net interest income, which is the difference between interest earned and interest paid, had risen 10% year-on-year to ₹1,337 crore.

Notably, AU Small Finance Bank's stock has declined by around 15% in the past one year, and the slump has been sharper at about 18% in 2024 so far.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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