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United News of India
5 days ago
- Business
- United News of India
AU SFB partners with IFC to integrate climate risk management into core banking strategy
Hyderabad, June 4 (UNI) Marking World Environment Day with a commitment to sustainable finance, AU Small Finance Bank (AU SFB), India's largest small finance bank, on Wednesday said it has partnered with the International Finance Corporation (IFC) to undertake a comprehensive climate risk advisory program. Through this initiative, AU SFB will embed climate risk considerations into its governance frameworks, strategic planning, risk management processes, and ESG disclosures – aligning with global best practices and evolving regulatory expectations, the bank said in a release. IFC will serve as AU SFB's lead ESG and climate risk advisor, supporting AU SFB in addressing the growing need for financial institutions to quantify, disclose, and manage climate-related financial risks. The engagement also aligns with the Reserve Bank of India's recent climate disclosure guidelines and global frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD). The collaboration reaffirms AU SFB's commitment to resilient banking systems and sustainable financial inclusion it will include three key components: A detailed evaluation of AU SFB's loan portfolio exposure to physical hazards such as floods, droughts, and extreme weather events. Using Intergovernmental Panel on Climate Change (IPCC) climate scenarios and long-term projections (up to 2100), this study will produce a risk heatmap highlighting vulnerable geographies and sectors. Analysis of potential financial exposure arising from policy shifts, market transitions, and technological disruptions linked to India's low-carbon goals. AU SFB will use Network for Greening the Financial System (NGFS) scenarios to model these risks. Application of the Partnership for Carbon Accounting Financials methodology to measure financed emissions (Scope 3, Category 15) across key asset classes — including corporate loans, SME finance, real estate, and sovereign bonds — for FY 2024–25 and FY 2025–26. To support the technical execution of this advisory program, IFC will work with StepChange, a specialized climate risk solutions provider, for analytical modeling and quantification. Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank, said, " This partnership with IFC represents a strategic inflection point in AU SFB's sustainability journey. By systematically integrating climate considerations into our risk architecture and decision-making, we aim to future-proof our portfolio and mobile capital for India's climate transition. This initiative aligns with our dual commitment to responsible banking and creating sustainable value for all stakeholders." AU SFB has already demonstrated strong sustainability leadership by launching a Green Fixed Deposit product that has raised Rs 1,178 crore as of March 31, 2025, with proceeds allocated exclusively to Renewable Energy and Clean Transportation sectors. The bank has achieved a Sustainalytics ESG Risk Rating of 17.1 (Low Risk) and holds an AA rating in the MSCI ESG assessment. UNI KNR BM
Time of India
22-04-2025
- Business
- Time of India
AU Small Finance Bank Q4 profit rises by 18% to 504cr
Jaipur: AU Small Finance Bank on Tuesday reported 18% rise in profit at Rs 504 crore for March quarter FY25 on account of an increase in core income. The bank's net profit was Rs 428 crore in the year-ago quarter. During the latest fourth quarter, the bank's total income increased to Rs 5,031 crore from Rs 3,385 crore in Q4FY24, AU Small Finance Bank (AU SFB) said here. Net Interest Income (NII) grew 57% to Rs 2,094 crore compared to Rs 1,337 crore in the year-ago period, it said. Net Interest Margin (NIM) for Q4FY25 stood at 5.8% compared to 5.1% in Q4FY24, it said. Net profit of the bank in full financial year 2024-25 rose 32% to Rs 2,106 crore from Rs 1,591 crore in the previous fiscal. The Jaipur-based bank declared a dividend of Re 1 per share for FY25 subject to shareholders' approval. However, the bank witnessed some deterioration in its asset quality with gross and Net NPAs NPA (non-performing asset). Sanjay Agarwal, MD & CEO ofAU SFB said, "As we enter FY26, the economic outlook remains uncertain, driven largely by global factors such as tariff war and geopolitical developments." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 35 & Earning? Protect Your Family with ₹1 Cr Life Cover ICICI Pru Life Insurance Plan Get Quote Undo 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, he said. AU SFB in April 2024 amalgamated Fincare Small Finance Bank, marking the first such consolidation in the sector. In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fincare SFB received 579 shares in AU SFB for every 2,000 equity shares held in Fincare SFB, the merger received final approval from RBI on March 4, 2024, with the effective date of April 1, 2024. tnn
