AU Small Finance Bank Q4 results: Net profit up 35% YoY to Rs 503.69 crore, NII up 57%
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)
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.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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