Shares of AU Small Finance Bank (SFB) fell more than 5% on Wednesday, a day after the lender released its quarterly figures.

At 1124 IST, the stock was trading down 3.6% to Rs 1,364.7 on BSE. Year-to-date, the stock is up 31% and 112% over the past three years.

Shares of AU Small Finance Bank hit an intraday low of 1,339.85 rupees, down 5.4%, on BSE today.

AU SFB’s net profit soared 105% to Rs 346 crore in the quarter ended March 2022, supported by lower provisions for bad debts and an improving business scenario. The lender had posted a net profit of Rs 169 crore in the same quarter of the previous financial year.

However, despite strong March quarter results, shares of the small Jaipur-based financial bank reacted negatively.

“All of the positives, including the strong quarterly numbers, have already been priced into AU Small Finance Bank shares,” said Ajit Mishra, Vice President of Research, Religare Broking.

Some market participants also believe that the overall weakness in the banking, financial services and insurance (BFSI) space, as well as the broader market, has also dampened investors’ risk appetite for services stocks. financials, particularly in the mid and small cap space. .

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Net interest margin – the difference between interest paid and interest received – in the reporting quarter improved to 6.3% from 5.7% a year ago. In addition, the bank’s cost of funds was also reduced to 5.7% from 6.5%.

Meanwhile, AU SFB’s asset quality has seen a significant improvement, with gross non-performing assets (NPA) falling to 2% of gross advances as of March 31, 2022, from 4.3% a year ago. Similarly, net NPAs fell from 2.2% to 0.5%.

Additionally, there was the highest ever quarterly disbursement of Rs 10,295 crore in March 2022, up 39%.