AU Small Finance Bank reported a net profit of ₹504 crore for Q4 FY25, marking an 18% year-on-year increase from ₹428 crore in Q4 FY24. This growth was primarily driven by a significant rise in core income.
Key Financial Highlights:
- Total Income: Increased to ₹5,031 crore in Q4 FY25 from ₹3,385 crore in Q4 FY24.
- Net Interest Income (NII): Grew by 57% year-on-year to ₹2,094 crore, up from ₹1,337 crore in the same quarter last year.
- Other Income: Rose by 41% to ₹761 crore compared to ₹541 crore in Q4 FY24.
- Pre-Provision Operating Profit (PPoP): Nearly doubled, reaching ₹1,292 crore, a 99% increase from ₹650 crore in the previous year.
- Net Interest Margin (NIM): Improved to 5.8% from 5.1% in Q4 FY24.
- Cost-to-Income Ratio: Enhanced to 55% from 65% in the corresponding quarter of the previous year.
- Return on Assets (ROA): Stood at 1.4%.
- Return on Equity (ROE): Recorded at 11.9%.
Dividend Declaration:
The bank’s Board of Directors has approved a dividend of ₹1 per share (10% of the face value) for FY25, pending shareholder approval.
Management Commentary:
Sanjay Agarwal, Managing Director & CEO of AU Small Finance Bank, acknowledged the uncertain global economic outlook influenced by factors such as tariff wars and geopolitical developments. However, he emphasized that India remains comparatively well-positioned, with both the central government and the Reserve Bank of India implementing supportive measures, including tax rationalization, interest rate cuts, and the injection of durable liquidity into the banking system.
