New Delhi [India], Oct. 31 (ANI): AU Small Finance Bank Ltd. has announced its financial performance for the second quarter ended September 30.
The bank's net interest income of Rs. 220 crore in Q2FY18 was up by 12 percent, while the total income of Rs. 508 crore was up 41 percent.
The gross AUM surged by 30 percent Y-o-Y to Rs 12,134 crore as on September 30, 2017 which was led by growth in all segments of retail and wholesale banking operations.
Moreover, retail loans exceed Rs. 10,000 crore, comprising 85 percent of loan book.
"Following the rapid and seamless transition from NBFC to banking operations, we have now established the operating base that we believe is poised to deliver sustainable growth over several years by bringing the benefits of a full-service bank to a large number of Indians, including in unbanked areas given our experience of 20 years in serving such markets and basis our small finance bank mandate," said MD and CEO AU Small Finance Bank, Sanjay Agarwal.
"Since our bank launch on April 19 this year, we have opened 1.75 lakh accounts and raised Rs. 2,000 crore of deposits that has allowed us to bring substantial reduction in the incremental cost of funds to 6.7 percent in H1. We have also disbursed more than Rs. 2,500 crore of loans in Q2 alone, as credit demand returned after GST implementation, while maintaining control over asset quality. We have recently launched gold loans, agriculture SME loans, apart from working capital facilities and RTGS facilities for customers to expand our portfolio of services," added Agarwal.
The bank also received corporate agency approval from IRDAI for distribution of third-party insurance products; tied up with Aditya Birla Health Insurance, piloted digital consumer durable loans with card-less EMI options, scaled-up and added new products including gold loans and agri-SME loans in retail bank and business banking in wholesale bank, and started digital onboarding of savings account customers. (ANI)