AU Small Finance Bank Q4: Profit grows by 32% YoY to Rs 2,106 Crore, declares dividend

Mumbai/ Jaipur | 22nd April, 2025: The Board of Directors of AU Small Finance Bank Limited at its meeting held today, approved the financial results for the quarter and financial year ended 31st March, 2025. AU SFB declared strong performance for FY25 in the backdrop of a challenging macroeconomic environment during the year - lower than expected GDP growth, challenging credit environment, tight liquidity, persistent inflation and elevated interest rates. The bank has delivered a well-rounded performance with RoA of 1.5% while focusing on tighter underwriting, managing cost of funds and controlling operational expenses.

Board of Directors approved a dividend of Rs 1/- per share (10% of face value) for FY 2024-25 subject to shareholder’s approval.

Performance at a glance: AU Small Finance Bank Q4’FY25 highlights

• The Bank’s Net Interest Income (NII) grew 57% YoY to Rs 2,094 Crore compared to Rs 1,337 Crore during Q4’FY24

• Other Income grew by 41% in Q4’FY25 to Rs 761 Crore compared to 541 Crore in Q4’FY24

• The Bank’s pre-provisioning operating profit (PPoP) for Q4’FY25 grew 99% YoY to Rs 1,292 Crore compared to Rs 650 Crore in Q4’FY24

• PAT was up 18% YoY for Q4’FY25 at Rs 504 Crore vs. Rs 428 Crore in Q4’FY24

• Cost to Income improved to 55% in Q4’FY25 vs. 65% in Q4’FY24

• Net Interest Margin (NIM) for Q4’FY25 stood at 5.8% compared to 5.1% in Q4’FY24

• The Return on Asset (ROA) and Return on Equity (ROE) for Q4’FY25 stood at 1.4% and 11.9% respectively

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AU Small Finance Bank FY25 highlights Earnings

• The Bank’s Net Interest Income (NII) grew 55% YoY to Rs 8,012 Crore compared to Rs 5,157 Crore during FY24

• Other Income grew by 49% in FY25 to Rs 2,526 Crore compared to Rs 1,697 Crore in FY24

• The Bank’s pre-provisioning operating profit (PPoP) for FY25 grew 86% YoY to Rs 4,581 Crore compared to Rs 2,466 Crore in FY24

• The net profit at Rs 2,106 Crore FY25 grew 32% YoY compared to Rs 1,592 Crore in FY24 (FY24 PAT including exceptional item was at Rs 1,535 Crore)

• Cost to Income decline by ~7% from 64% in FY24 to 57% in FY25

• Net Interest Margin (NIM) for FY25 stood at 5.94% compared to 5.45% in FY24

• Return on Asset (ROA) and Return on Equity (ROE) stood at 1.5% and 13.1% respectively

• EPS at Rs 28 grew by 19% YoY whereas Book Value Per Share (BVPS) at Rs 231 grew by 23%

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Commenting on the performance, Mr. Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank said, “We are coming out of a tough macroeconomic environment marked by persistent inflation, tight liquidity, a challenging credit environment, and lower-than-expected GDP growth. As we enter FY26, the economic outlook remains uncertain, driven largely by global factors such as tariff war and geopolitical developments. 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.

Against this backdrop, we have delivered a strong performance with higher than sectoral growth in both deposits and advances. We made meaningful progress on productivity and efficiency, which enabled us to deliver stronger profitability—even amid a credit cycle in unsecured businesses of microfinance and credit cards.

As we celebrate 30 years of AU and 8 years of our banking journey, we remain focused on building an institution that can truly scale with sustainability. I want to express my sincere gratitude to all stakeholders for their continued trust and support. We remain committed to driving financial inclusion, empowering individuals and businesses, and contributing towards strengthening India’s economic resilience and advancing sustainable growth”.

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