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📊 AU Small Finance Bank Q4 & FY25 Results – Growth Anchored by Profitability & Prudent Risk Management

Created by Piyush Patel_ in Company Update 23 Apr 2025

📊 AU Small Finance Bank Q4 & FY25 Results – Growth Anchored by Profitability & Prudent Risk Management

Date: 22nd April 2025
CMP: ₹613 | Market Cap Leader in Small Finance Banking

🏦 Key Financial Highlights

🔹 AUM/Advances Growth

Gross Loan Portfolio grew to ₹1,15,704 Cr (20% YoY | 6.2% QoQ).
Secured Portfolio (Retail + Commercial) expanded 25.3% YoY and 8.1% QoQ.
Unsecured Portfolio contracted by 17.6% YoY, reflecting conservative asset quality focus amidst sector-wide deleveraging.

🔹 Consolidated Income Growth

Net Interest Income (NII) surged by 55% YoY to ₹8,012 Cr in FY25 and by 57% YoY in Q4 to ₹2,094 Cr.
Other Income rose by 49% YoY in FY25 to ₹2,526 Cr and by 41% YoY in Q4 to ₹761 Cr.
Total Income for FY25 reached ₹18,590 Cr, up 52% YoY.

🔹 Profit Performance

FY25 PAT: ₹2,106 Cr (32% YoY growth)
Q4FY25 PAT: ₹504 Cr (18% YoY growth)
EPS: ₹28 for FY25 (up 19% YoY)
Book Value Per Share: ₹231 (up 23% YoY)

📉 Asset Quality Snapshot

Metric	Q4FY25	Q3FY25	Q4FY24
Gross NPA (%)	2.28%	2.31%	1.67%
Net NPA (%)	0.74%	0.91%	0.55%
Provision Coverage (PCR)	84%	80%	76%

The bank demonstrated prudent provisioning with an additional ₹150 Cr set aside in Q4FY25 to further strengthen buffers, primarily for unsecured exposures.

📌 Key Operating Metrics

NIM: 5.94% for FY25 vs. 5.45% in FY24 | Q4 NIM at 5.8%
RoA: 1.5% for FY25 | Q4 RoA at 1.4%
RoE: 13.1% for FY25 | Q4 RoE at 11.9%
Cost to Income Ratio: Improved to 57% in FY25 (vs. 64% in FY24) | Q4 at 55%
Liquidity Coverage Ratio (LCR): Healthy at 116%

🧮 Solvency, Liquidity, Profitability & Valuations (CMP ₹613)

Ratio	Q4FY25	Q3FY25
Capital Adequacy Ratio (CAR)	20.1%	20.1%
Tier-I Ratio	18.1%	18.8%
Return on Assets	1.4%	1.5%
Debt/Equity Ratio	0.33	0.26
Price/Book (P/BV)	~2.65x	Based on BVPS ₹231 at CMP ₹613

🌐 Industry KPIs vs. AU Bank Performance

KPI	AU Bank	Industry Avg
Loan Growth	20% YoY	~10.8% YoY
Deposit Growth	27% YoY	~10.1% YoY
GNPA	2.28%	~3.1–4.2%
CASA Ratio	29%	~40%
NIM	5.94%	~3.5–4.0%

AU Bank’s high RoA model and leaner operations are positioning it above the peer average in profitability, despite macro headwinds.

🔭 Outlook: Near Term & Long Term

Near-Term View (FY26):

Margins may moderate slightly due to rising cost of funds.
Risk-controlled growth likely in secured books.
Further integration of Fincare business to add scale with cost synergies.

Long-Term View (Vision 2027):

Strategic portfolio shift towards high-RoA segments to continue (~73% already achieved).
Digital innovation (AU Ivy, AU Eternity, AU Udyogini) to enhance cross-sell and fee income.
AU Bank is building resilience with a strong capital base, diversified product suite, and robust liquidity management.

📝 Disclosure

This blog post is for informational purposes only. It does not constitute investment advice or a recommendation. Investors must exercise their own judgment before investing. AU Bank's performance data are derived from publicly available documents including investor presentations, press releases, and financial results.