AU Small Finance Bank Announces FY25/Q4
Financial Results
Profit
grows by 32% YoY to ₹2,106 Crore for FY25
RoA
and RoE at 1.5% and 13.1% for FY25
Deposits
grow by 27% and Loans grow by 20% for FY25
Declares
dividend of ₹1/- per share (10% of face value) for FY25
Key highlights for FY25 and
Q4’FY25
Profit & Loss
o
Operating profit (PPoP) increased by 86% for
FY25 at ₹4,581 Crore; for Q4’FY25 PPoP was ₹1,292 Crore, up 99% YoY
o
FY25 PAT was up 32% YoY at ₹2,106 Crore;
Q4’FY25 PAT was up 18% YoY at ₹504 Crore
o
FY25 EPS at ₹28 is up 19% YoY, whereas BVPS
grew by 23% during the year to ₹231
o
RoA for FY25/Q4 stood at 1.5%/1.4% and RoE at
13.1%/11.9% respectively
o
NIM improved to 5.94% for FY25 from 5.45% in
FY24 and for the quarter stood at 5.8%
o
C/I for FY25 stood at 57% vs 64% for FY24; on
QoQ, C/I was at 55% in Q4 vs 54% in Q3
Balance Sheet
o
Total deposits stood at ₹1,24,269 Crore,
registering a YoY growth of 27% on merged financials
o
Gross loan portfolio stood at ₹1,15,704
Crore, registering a YoY growth of ~20% on merged financials; Unsecured de-grew
by 18%
o
CD ratio stands at 79% excluding advances
created out of refinance from DFIs
o
CASA for the quarter stood at 29%; CASA +
Retail term deposit at 62%; and CASA + Retail TD + non-callable bulk deposit at
78%
o
Cost of Funds for full year was 7.07% and it
increased by 7 bps during the quarter to 7.14%
o
Bank raised ₹ 770 Crore Tier II capital in
Mar’25 and the capital adequacy ratio stands at 20.1% with Tier I ratio at
18.1%
o
PCR at 84% including technical write-off;
GNPA ratio is 2.28%, down from 2.31% in Q3’FY25; NNPA ratio at 0.74% vs. 0.91%
in Q3’FY25
FY25 numbers are on merged basis and
previous periods numbers may not be comparable
Mumbai/ Jaipur | 22nd April,
2025: 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 31st March, 2025.
Executive
Summary
AU
SFB declared strong performance for FY25 in the backdrop of a challenging
macroeconomic environment during the year - lower than expected GDP growth,
challenging credit environment, tight liquidity, persistent inflation and
elevated interest rates. Bank has delivered a well-rounded performance with RoA
of 1.5% while focusing on tighter underwriting, managing cost of funds and
controlling operational expenses.
Board of Directors approved a dividend
of ₹1/- per share (10% of face value) for FY 2024-25 subject to shareholder’s
approval.
Performance at a glance:
Q4’FY25 highlights
· The
Bank’s Net Interest Income (NII) grew 57% YoY to ₹2,094 Crore compared to
₹1,337 Crore during Q4’FY24
· Other
Income grew by 41% in Q4’FY25 to ₹ 761 Crore compared to 541 Crore in Q4’FY24
· The
Bank’s pre-provisioning operating profit (PPoP) for Q4’FY25 grew 99% YoY to
₹1,292 Crore compared to ₹650 Crore in Q4’FY24
· PAT
was up 18% YoY for Q4’FY25 at ₹504 Crore vs. ₹428 Crore in Q4’FY24
· Cost
to Income improved to 55% in Q4’FY25 vs. 65% in Q4’FY24
· Net
Interest Margin (NIM) for Q4’FY25 stood at 5.8% compared to 5.1% in Q4’FY24
· The
Return on Asset (ROA) and Return on Equity (ROE) for Q4’FY25 stood at 1.4% and
11.9% respectively
FY25 highlights
Earnings
· The
Bank’s Net Interest Income (NII) grew 55% YoY to ₹8,012 Crore compared to
₹5,157 Crore during FY24
· Other
Income grew by 49% in FY25 to ₹ 2,526 Crore compared to 1,697 Crore in FY24
· The
Bank’s pre-provisioning operating profit (PPoP) for FY25 grew 86% YoY to ₹4,581
Crore compared to ₹2,466 Crore in FY24
· The
net profit at ₹2,106 Crore FY25 grew 32% YoY compared to ₹1,592 Crore in FY24
(FY24 PAT including exceptional item was at ₹1,535 Crore)
· Cost
to Income decline by ~7% from 64% in FY24 to 57% in FY25
· Net
Interest Margin (NIM) for FY25 stood at 5.94% compared to 5.45% in FY24
· Return
on Asset (ROA) and Return on Equity (ROE) stood at 1.5% and 13.1% respectively
·
EPS at ₹28 grew by 19% YoY whereas Book Value
Per Share (BVPS) at ₹231 grew by 23%
Advances
· Gross
loan portfolio (GLP) stood at ₹115,704 Crore, registering a YoY growth of 20%
from merged numbers and QoQ growth of 6.2%
· Secured
businesses were up 25.3% YoY and 8.1% QoQ
· Unsecured
businesses de-grew 17.6% YoY and by 10.1% QoQ and driven by industry wide
deleverage in MFI and corrective actions taken in Credit Cards
· Yield
on gross advances was stable at 14.4%
· 82%
of new disbursements were in high-RoA businesses for FY25
Deposits
· Total
Deposits grew 27% YoY compared to opening merged financials and 10.7% QoQ; CASA
ratio at 29% as on Mar’25
· CA/SA
deposits have grown by 28%/12% YoY and 24%/2% QoQ
· CASA
+ Retail TD stands at 62% and CASA + Retail TD + Non-callable Bulk TD is 78% of
total deposits
· Cost
of Funds (CoF) for FY25 at 7.07%; CoF for Q4’FY25 increased by 7 bps QoQ to
7.14%
Balance Sheet
· Credit
Deposit (CD) ratio as on 31st March 2025 stood at 79% excluding
advances created out of refinance from Development Finance Institutions (DFI)
like NABARD, SIDBI, NHB, MUDRA
· The
Bank had a Liquidity Coverage Ratio (LCR) of 116% for Q4’FY25 and continues to
maintain additional liquidity buffers in the form of high-quality, liquid,
non-SLR investments, which are not part of LCR computation
· Shareholder’s fund of the Bank has now reached ₹17,166
Crore
·
Capital
adequacy ratio as on 31st Mar’25 stands at 20.1% and Tier I capital
adequacy stands at 18.1%
Asset Quality
· GNPA
improved to 2.28% vs 2.31% in Q3 and NNPA improved to 0.74% vs. 0.91% in
Q3
· Additionally,
Bank carries ₹17
Crore of contingency and ₹41
Crore of floating provision
· Net
credit cost for FY25 is at 1.3% of the Total Assets
· Provision
coverage ratio including technical write off improved to 84% from 80% in
Q3’FY25
Other key updates
Credit Rating
· AA+/
Stable for Fixed deposit program by CRISIL
· AA/
Stable for long term Tier II Bonds by CRISIL, ICRA, India Ratings and CARE
· A1+
for short term Certificate of Deposit program by CRISIL, India Ratings and CARE
Initiatives
& Awards for FY25
· Bank
raised ₹770 Crore capital in March’25 via Tier-II bond issuance
· Launched
‘AU Eternity’ - a luxury Banking Program in collaboration with Mastercard. It
is designed to complement ‘AU IVY’, ‘AU Royale’ and ‘AU Platinum’
Awards
and recognition:
· Awarded
“Best SIP Performer in Bank Category 2024” & “Best Performer in Bank
Category 2024 ” by Bombay Stock Exchange.
· Declared
as the “Best Small Finance Bank” At Mint BFSI Summit & Awards
· Awarded
with “Best ESG Practices” At ASSOCHAM 19th Annual Summit & Awards 2024.
· Secured
56th rank in “Great Companies to Work in 2024” & Adjudged “Top 50 Best
Place to Work for Millennials” by Great place to Work
· Awarded
with “Best Cloud Management and Infrastructure Initiative Award” at ET Now Data
Center & Cloud Innovation Summit & Awards 2024.
· Awarded
for “Employee Engagement” and for “HR Business Partnership Function” by
Peoplefirst HR Excellence Award 2024
· Awarded
“Best Tech Talent & Organization”, “Best Technology Bank”, “Best Digital
Sales, Payments & Engagement” in SFB category at 20th Indian Banks
Association Annual Banking Technology Awards 2024
CSR initiatives:
· AU
Ignite, Bank's skills training academy across 16 centers in Rajasthan, has,
till date, trained 29,500 youths of which 21,500+ were linked to employment
· AU
Bano Champion, our rural sports coaching initiative, is live across 60
locations with 8,100+ children benefited across 7 sports
· AU
Udyogini, our flagship Women Entrepreneurship program, has till date engaged
3,900+ women with 2,152 of them nurtured under Individual Women
Entrepreneurship
Commenting
on the performance, Mr. Sanjay Agarwal, Founder, MD & CEO, AU Small Finance
Bank said, ““We are coming out of a tough
macroeconomic environment marked by persistent inflation, tight liquidity, a
challenging credit environment, and lower-than-expected GDP growth. As we enter
FY26, the economic outlook remains uncertain, driven largely by global factors
such as tariff war and geopolitical developments. However, India is
comparatively well-positioned, with both the Central Government and the RBI
implementing supportive measures—including tax rationalization, interest rate
cuts, and the injection of durable liquidity into the banking system.
Against this backdrop, we have delivered
a strong performance with higher than sectoral growth in both deposits and
advances. We made meaningful progress on productivity and efficiency, which
enabled us to deliver stronger profitability—even amid a credit cycle in
unsecured businesses of microfinance and credit cards.
As we celebrate 30 years of AU and 8
years of our banking journey, we remain focused on building an institution that
can truly scale with sustainability. I want to express my sincere gratitude to
all stakeholders for their continued trust and support. We remain committed to
driving financial inclusion, empowering individuals and businesses, and contributing
towards strengthening India’s economic resilience and advancing sustainable
growth”.
