AU SFB in the green

Today morning, AU Small Finance Bank (AU SFB) announced its performance for Q4FY24 and for FY24. And it looks like good going.

The company announced that for Q4FY24, its Gross Advances rose 25% (YoY), up 9% (QoQ) at Rs.73,999 crore while deposits rose 26% (YoY) and up 9% sequentially at Rs.87,182 crore.

CASA deposits were up 9% (YoY) and 10% (QoQ) while CASA Ratio was at 33% for Q4FY24 v/s 38% (YoY).

Bank Securitized loan portfolio of Rs.616 crore in Q4’FY24 to diversify funding profile and optimise cost. Average Cost of Funds (CoF) for the quarter increased by 8 bps QoQ to 6.98% as against 6.90% in Q3’FY24.

The Bank added that Advances growth continues to remain strong across both Retail assets and Commercial banking assets and Bank achieved highest ever disbursement in the month of March’24. The asset quality continues to remain within the long-term range.

The Bank carries sufficient liquidity in the form of LCR investments and high quality non-SLR investments and has started offering product and services to customers under the Authorised Dealer Category – I (AD Cat-I) licence during the quarter.

Giving an update on the merger, the Bank said that post receiving RBI approval on March 4, 2024, the merger of Fincare SFB with and into AU SFB became effective from April 1, 2024, and the deposit rates at Fincare branches have been aligned to AU deposit rates w.e.f. April 1, 2024. Further, the integration process is expected to get completed over the next 9 months.

The stock which had closed yesterday at Rs.605.20, opened today at Rs.610.05 and rose to an intraday high at Rs.638 and continues to trade around the same levels. Its 52-week high stands at Rs.813.