Shares of AU Small Finance Bank fell 4.25% to the day’s low of Rs 644 on the BSE after the bank reported a marginal decline of 0.4% quarter-on-quarter (QoQ) in its total deposits, amounting to Rs 97,290 crore for the first quarter ended June 2024.
The company’s CASA deposits, however, saw a 1.8% QoQ increase. The amount for Q1 FY25 stood at Rs 32,034 crore, up from Rs 31,456 crore in the previous quarter.
AU Small Finance Bank’s cost of funds decreased by 7 basis points to 7.03% in the June quarter from 7.10% in the preceding quarter. Meanwhile, gross advances stood at Rs 90,700 crore in the first quarter of FY25, reflecting a 5% increase in QoQ.
“Bank delivered a resilient performance with early progress on implementing each of the articulated strategies, be it focusing on the cost of funds, increasing disbursement yields and calibrating portfolio mix, or achieving disbursement targets in a seasonally muted quarter,” said the bank in a filing to the exchanges while commenting on the Q1 performance.
Q1FY25 was also the first quarter following the amalgamation of Fincare SFB, and the merger continues to progress smoothly, remaining on schedule without any disruptions or surprises.
Integration across liabilities, control functions, and business segments has been seamless with both teams collaborating to deliver uninterrupted service to the customers while maintaining a focus on business growth, the company added.
Earlier in June, the board of AU Small Finance Bank also approved a Rs 11,000 crore fundraising on June 27, according to an exchange filing. As per the bank’s statement, a sum of Rs 5,000 crore will be raised by private placement, qualified institutions placement (QIP), preferential allocation, or a combination of these methods, or any other mechanism considered suitable.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
