The Board of Directors of AU Small Finance Bank Limited at its meeting held today, approved the financial results for the quarter and financial year ended March 31, 2024.
Executive Summary
Amidst a challenging macroeconomic landscape characterized by elevated interest rates and intense competition for deposit mobilization, AU Small Finance Bank(AU SFB) has sustained its growth momentum. FY24 marked a resilient operational performance, with a notable 26% and 25% Year-on-Year growth in deposits and advances respectively. This growth underscores the Bank’s commitment to its strategy of deposit-led asset expansion. Furthermore, the recent amalgamation of Fincare SFB into AU Small Finance Bank positions the institution for enhanced scale and efficiency.
Commenting on the performance, Mr. Sanjay Agarwal, Founder, MD & CEO, of AU Small Finance Bank, said, “India’s economic landscape is surging forward, with GDP growth projected to be among the highest globally. This robust growth fuels optimism for businesses and entrepreneurs like me. With a robust GDP, controlled inflation, and a continuously improving regulatory environment, India’s macro picture paints a bright future for its economy. I’m really excited about the opportunity and scope for execution that this growth provides to an institution like AU. This period of growth also coincides with our own philosophy of building AU forever. The first phase of our forever journey, that is AU @ 2027, is the foundational period of first 10 years of our banking journey.
Our performance in the current quarter has remained absolutely on track with deposit growth outpacing advances growth, margins broadly remaining within our guided range and asset quality continuing to be robust. I am happy that our merger with Fincare has received all regulatory approvals in record time, and we are now operating as a merged entity. We now have 2,383 physical touchpoints across India and apart from a brick-and-mortar presence, we have a body and soul present in all these locations, giving us an extensive network which ensures we’re closer to our customers than ever before and fast forwards our distribution build-out by many years”.