te AU Small Finance Bank hits a lower circuit; slides over 9%; here's what is making it struggle | Zee Business

AU Small Finance Bank hits a lower circuit; slides over 9%; here's what is making it struggle

AU Small Finance Bank's net interest income (NII) is up by 14.9 per cent to Rs 1324.9 crore against Rs 1152.7 crore Year-on-Year (YoY). It was above Zee Business research estimates of Rs 1300 crore.

AU Small Finance Bank hits a lower circuit; slides over 9%; here's what is making it struggle
The lender's profit after tax, however, was down by 4.5 per cent to Rs 375.2 crore against Rs 392.8 crore YoY. It was below analysts' estimates of Rs 410 crore. Photo: File/Representational

AU Small Finance Bank Share Price: AU Small Finance Bank touched the lower circuit and slid over nine per cent in the morning session on BSE on Monday (January 29, 2024) after the lender reported weak December-quarter results.

The stock was trading down by 8.84 per cent, or Rs 62.60, at Rs 645.45 at 10:43 am on Monday.

The spurt in volume was more than 5.72 times, as per the BSE website.

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Earlier, the stock hit a 10 per cent lower circuit of Rs 637.25.

Why AU Small Finance is faring poorly

The stock of the lender is trading poorly after it reported weak Q3 numbers.

Its net interest income (NII) is up by 14.9 per cent to Rs 1324.9 crore against Rs 1152.7 crore Year-on-Year (YoY).

It was above Zee Business research estimates of Rs 1300 crore.

The lender's profit after tax, however, was down by 4.5 per cent to Rs 375.2 crore against Rs 392.8 crore YoY.

It was below analysts' estimates of Rs 410 crore.

Its Q3 provisions were up by 4.9 times to Rs 158.9 crore compared to Rs 32.6 crore YoY, while higher by 39 per cent to Rs 114.3 crore Quarter-on-Quarter (QoQ).

The slippages skyrocketted by 74.5 per cent to Rs 403 crore compared to Rs 231 crore YoY. It was higher by 15.5 per cent against Rs 349 crore QoQ. 

The gross non-performing assets (GNPA), meanwhile rose by 1.98 per cent in the December quarter versus 1.91 per cent in the September quarter.

Points from AU Small Finance Bank presentation

The nank crossed a significant milestone with balance sheet surpassing Rs 1 lakh crore and deposits crossing Rs 80,000 crore.

Net Interest Margin (NIM) is expected to be at the lower end of the guided range of 5.5 per cent-5.7 per cent.

Written By: ZeeBiz WebTeam
Updated: Mon, Jan 29, 2024
11:11 am
New Delhi, ZeeBiz WebDesk
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