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Au Small Finance Bank reported a better than expected set of numbers for Q1FY22 across all parameters. NII for the quarter was up by 40.4% YoY to Rs. 724 crore while other income for the quarter was down by 18.4% yoy to Rs. 184.2 crore. Pre provisioning profits for the quarter was up by 1.3% YoY and 20.7% QoQ to Rs. 520.5 crore. Provision for the quarter was down by 2.6% YoY to Rs. 176.6 crore while the bank reported a profit of Rs. 203.2 crore up by 1.2% yoy. NII growth was driven by strong advances growth of 29% yoy while deposits registered a growth of 38% yoy. CASA deposits accretion remained robust with CASA at 26% as compared to 23% in Q4FY21. Asset quality was stable with GNPA and NNPA at 4.31% and 2.26% of advances as compared to 4.25% and 2.18% in Q4FY21. Overall AU Small Finance Bank posted a strong set of numbers especially on the asset quality front which held up reasonably well. Post the Q1FY22 numbers we maintain our BUY rating on the bank.

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