AU Small Finance Bank net profit jumps 44% to ₹387 crore

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African Union Microfinance Bank (AUSFB) on Saturday announced a 44 per cent increase in net profit for the first quarter ended 30 June 2023 at Rs.387 crore (Rs.268 crore).

The Jaipur-based microfinance bank recorded a net profit of Rs. 425 crore in the US March quarter 2023.

For the quarter under review, total income came to ₹2,774 crore, up 40 per cent from ₹1,979 crore. In the fourth quarter of FY23, AUSFB recorded total income of ₹2,608 crore.

““AUSFB delivered another quarter of consistent performance across benchmarks with sustained growth in our assets, deposits and profitability despite some impact on our margins due to deposit re-pricing and negative carry-over from excess precautionary liquidity,” said Sanjay Agarwal, Managing Director and CEO, Microfinance Bank of Australia.

He added, “Going forward, we will continue to focus on sustainable growth, aiming to improve the size of our balance sheet while penetrating deeper into rural India, where a large number of unbanked residents reside.”

Agarwal also noted that 45 percent of the bank’s new customer acquisition has been through digital products and channels such as “AU 0101.”