Q3 FY23 (OCT-DEC 2022) Concall Summary

AU SMALL FINANCE BANK LIMITED

Concall Date: 19 January 2023
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NII: ₹1,152.7 cr (▲40.5%) Net Profit: ₹392.8 cr (▲30.1%)

FINANCIAL HIGHLIGHTS
PARTICULARS Q3 FY23 Q3 FY22 Change
(₹ cr) (₹ cr) % YoY
Net Interest Income 1,153 820 40.5%
Net Profit 393 302 30.1%
Net Interest Margin 6.2% (Q3)
Cost to Income Ratio 61.6% (Q3)
Return on Assets# 2.0% (Q3)
Total Advances* ₹56,335 cr
Total Deposits* ₹61,101 cr
CASA Ratio* 38%
GNPA* 1.81%
NNPA* 0.51%
CRAR* 21.97%
#annualized *as on 31stDecember 2022
• The average cost of funds for Q3 FY23 stood at 6%, up by 14 bps QoQ.
• In Q3 FY23, the ROE (return on equity) was 15.2%.
• Cost to Income ratio for Q3 FY23 witnessed a decline of 91 bps QoQ.
• In Q3 FY23, CASA deposit stood at ₹23,471 crore, increased by 35% YoY. The CASA plus retail term
deposits mix was at 70%.

BUSINESS HIGHLIGHTS
• On a sequential basis, CASA ratio witnessed a decline of 400 bps, as there was a strong traction
towards term deposits.
• In Q3 FY23, disbursements stood at ₹10,012 crore. The disbursement yield for the quarter was at 13%.
• The average loan ticket size stood at ₹1.9 lakh as on 31st December 2022.
• In the home loan business, disbursements during the quarter stood at ₹547 crore. As on 31st
December 2022, gross advances amounted to ₹3,695 crore with average ticket size of ₹11 lakh.
• The commercial banking business mainly comprises of business banking with disbursements of ₹1,033
crore and agriculture business with disbursements of ₹690 crore.
• During the quarter, the deposits increased by 4.7% QoQ and 38% YoY.
• The total advances witnessed a growth of 38.4% YoY and 7.4% QoQ.
 Concall Summary
AU SMALL FINANCE BANK LTD

ASSET QUALITY & CAPITAL ADEQUACY

• The provision coverage ratio (PCR) (including technical write-offs) stood at 75% as on 31st December
2022. The company made additional provisioning for contingency of ₹98 crore and restructured
provision of ₹127 crore.
• The asset quality witnessed an improvement on a sequential basis.
• In Q3 FY23, the company issued ~90,000 credit cards taking the total live credit cards to 3.9 lakh.
• In Q3 FY23, the collection efficiency stood at 107%. The average liquidity coverage ratio was at ~123%
for the quarter.
• The bank onboarded 3.3 lakh new customers during the quarter and 36% of customer acquisitions
was via digital products.

UPDATES
• During the quarter, the bank announced bancassurance partnership with HDFC Life Insurance and
ICICI Lombard General Insurance with the view to expand the third-party offerings. They have 3
bancassurance partners each for Life products and non-life products which should help in better
engagement with customers.
• During the quarter, the bank opened 42 new touchpoints and also entered 2 new states namely
Andhra Pradesh and Kerala.
• During the quarter, the bank made investments towards digital initiatives viz credit cards/QR/Video
Banking (58%), distribution expansion (30%) and brand campaign (12%).

SEBI Registration no: IHN3000007493

Disclaimer:

This document has been prepared to provide a brief summary of the conference call conducted by the companies and
is intended to be used for learning enhancements. Nothing contained herein should be construed as a
recommendation on any stock or sector.