AU Small Finance Bank Reports Strong Deposit Growth Outpacing Loan Expansion
AU Small Finance Bank logs higher deposit growth than gross loan expansion
The Economic Times
Image: The Economic Times
AU Small Finance Bank, based in Kolkata, India, achieved a 22.8% year-on-year growth in deposits, totaling ₹1.53 lakh crore by March, surpassing its gross loan portfolio growth of 21.3%. This trend contrasts with the industry's average loan growth of 13.8% as reported by the Reserve Bank of India.
- 01Deposits grew by 22.8% to ₹1.53 lakh crore.
- 02Gross loan portfolio increased by 21.3% to ₹1.40 lakh crore.
- 03Excluding securitized loans, gross advances rose by 25.1%.
- 04CASA ratio declined to 28.4%, down from 29.2% last year.
- 05Industry average bank credit growth was 13.8%.
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AU Small Finance Bank, headquartered in Kolkata, India, reported a significant 22.8% year-on-year increase in deposits, reaching ₹1.53 lakh crore by the end of March. In contrast, the bank's gross loan portfolio grew by 21.3% to ₹1.40 lakh crore. Notably, the bank's gross advances, excluding securitized loans, surged by 25.1% to ₹1.36 lakh crore. This performance stands out against the industry average of 13.8% growth in bank credit, as published by the Reserve Bank of India. However, the bank's current and savings account (CASA) ratio fell to 28.4%, down from 29.2% a year ago, indicating slower growth in CASA compared to fixed deposits. This trend highlights AU Small Finance Bank's strong deposit acquisition strategy amid a competitive banking landscape.
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The strong deposit growth may lead to better interest rates for customers and increased lending capacity for the bank, benefiting homebuyers and small businesses.
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