News

AU SFB – Q2FY27 first cut

• NII grew 32% y-o-y to Rs. 2,820 crore, 1.4% above our estimate of Rs. 2,781 crore, led by a 28% loan growth and a 33 bps y-o-y rise in NIM to 5.8%, NIM slipped 9 bps q-o-q on higher liquidity and seasonality.
• Operating profit rose 25% y-o-y and came ~2% above our estimate, while lower provisions drove PAT up 53% y-o-y to Rs. 858 crore, in line with our estimates.
• Deposits grew a strong 29% y-o-y (8% q-o-q) and CASA ratio rose 70 bps q-o-q to 29.5%, GNPA/NNPA stood at 1.99%/0.81% and credit cost eased to 0.8% from 1.2% y-o-y.
• RoA held at 1.7% and RoE improved to 16.1%.