Jaipur-based AU Small Finance Bank reported a 44 per cent jump in net profit at Rs 387 crore in the first quarter of the current financial year. Interest income and higher loan disbursements contributed significantly to this. The total income of the bank increased to Rs 2,773 crore during this period, from Rs 1,979 crore in the June 2022 quarter. Along with this, interest income also increased from Rs 1,820 crore to Rs 2,458 crore in the quarter under review. Let us tell you, on Friday, the share price of the company had closed at Rs 765 after falling by 0.95 per cent.

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Net income from interest increased by 28 per cent to Rs 1,246 crore in the April-June 2023 quarter from Rs 976 crore in the same quarter of 2022. However, net interest margin declined to 5.7 per cent from 5.9 per cent year-on-year.

The bank’s founder and chief executive officer Sanjay Agarwal told PTI that the decline was due to offering higher interest rates, which the bank had to do to attract more deposits.