AU Small Finance Bank posted strong financials for the fourth quarter of FY25, beating macroeconomic challenges with robust growth across key metrics. The lender reported a standalone net profit of Rs 503.69 crore for Q4 FY25, up 35.8% from Rs 370.73 crore in Q4 FY24. The growth was attributed to improved operational efficiency and lower provisioning.
NII, NIM and earnings
Net Interest Income (NII) surged 57% YoY for Q4 FY25 and 55% YoY for the full year. Net Interest Margin (NIM), calculated on daily average interest-earning assets, stood at 5.8% for Q4 (down 6 bps from Q3), and 5.9% for the full year, compared to 5.4% in FY24. The slight dip in quarterly margin was due to asset mix adjustments.
Core other income increased 39% YoY for FY25 and 23% YoY for the March quarter, driven by cross-sell efforts and traction in the Authorised Dealer-I (AD-I) business.
Q4 FY25 Highlights (YoY)
| Particulars | Q4 FY25 (₹ Cr) | Q4 FY24 (₹ Cr) | YoY Growth |
|---|---|---|---|
| Interest Earned | 4,271 | 2,829 | 51% |
| Interest Expended | 2,177 | 1,492 | 46% |
| Net Interest Income (NII) | 2,094 | 1,337 | 57% |
| Other Income | 761 | 541 | 41% |
| Net Total Income | 2,855 | 1,878 | 52% |
| Operating Expenses | 1,562 | 1,228 | 27% |
| Pre-Provision Operating Profit (PPOP) | 1,292 | 650 | 99% |
| Provisions | 635 | 118 | 439% |
| Profit Before Tax (PBT) | 657 | 532 | 24% |
| Profit After Tax (PAT) | 504 | 371 | 36% |
Loan and deposit growth
Advances grew 20% YoY to Rs 1.16 lakh crore, led by 21% growth in retail secured assets and 32% growth in commercial banking loans. Deposits jumped 27% YoY to Rs 1.24 lakh crore. The bank’s CASA ratio stood at 29.2% as of March 2025, with CA and SA deposits rising by 28% and 12% YoY respectively.
Profitability and cost ratios
Pre-provision operating profit (PPOP) rose 99% YoY in Q4 to Rs 1,292 crore. For the full year, PPOP increased 86% to Rs 4,581 crore. Return on Assets (RoA) was maintained at 1.5%. Cost-to-income ratio improved to 57% in FY25 from 64% in FY24. Earnings per share (EPS) rose 19% YoY to Rs 28.
Asset quality and capital
Gross NPA stood at 2.28% and Net NPA at 0.74%. The capital adequacy ratio was healthy at 20.1% following a Rs 770 crore Tier-II capital raise in March 2025.
Strategic initiatives
The bank completed the integration of Fincare branches and has applied for a Universal Banking License with RBI evaluation currently in progress. It also declared a dividend of Re 1 per share for FY25.
