Strong Growth in Disbursements, Deposits, and Advances for AU Small Finance Bank | AU Small Finance Bank- Q3FY22 Business Update

AU Small Finance Bank released its Quarterly Business Update for the quarter ended 31^st December 2021 on 4^th January 2022. The posted figures look exceptional figures, so let’s discuss more about this business update of AU Small Finance Bank for Q3FY22 in this article as we move ahead.

Q3FY22 Business Updates:

• Total Deposits of the bank have grown by 49% YoY from Rs. 29,708 Cr. in Q3FY21 to Rs. 44,278 Cr. in Q3FY22. The deposit book has grown by 13% QoQ from Rs. 39,034 Cr. in Q2FY22.
• CASA Ratio of the bank was 22% in the same quarter of the last financial year, which has now moved up to 39% in Q3FY22. Sequentially, the CASA ratio has moved up from 30% in Q2FY22.
• Cost of Funds has come down to 5.9% in Q3FY22 from 6.7% and 6.1% in Q3FY21 and Q2FY22 respectively.
• Incremental Cost of Funds is down to 5.3% in Q3FY22 similar to the previous quarter, but down from 5.8% in Q3FY21.
• The Loan AUM of the bank stands at Rs. 42,027 Cr. in Q3FY22 which has increased by 27% YoY from Rs. 33,222 Cr. in Q3FY21 and by 11% QoQ from Rs. 38,011 Cr. in Q2FY22.
• The Gross Advances of the bank for Q3FY22 is Rs. 40,723 Cr. as of the quarter ended 31^st December 2021.
• Moving ahead to disbursements, the Funds-based disbursements is up by 33% YoY and 59% QoQ to Rs. 8,152 Cr. as of the quarter ended 31^st December 2021. While the Non-Funds based disbursements are Rs. 627 Cr. for the same period up by 55% YoY and 48% QoQ.
• The Year-to-Date Monthly Collection Efficiency is at 107% as of December 2021 which is a positive sign for the company.
• Also, the Bank is not expecting any restructuring at least COVID related which is another positive thing.

What Should Shareholders Do?