AU Small Finance Bank Limited — Important, 22-04-2025: Updates

Profit for FY25 increased by 32% YoY to ₹2,106 Crore, with a robust Return on Assets (RoA) and Return on Equity (RoE) at 1.5% and 13.1%, respectively. Overall deposits grew by 27% and loans by 20% YoY. The pre-provisioning operating profit (PPoP) surged 86% YoY to ₹4,581 Crore. The improving Net Interest Margin (NIM) reached 5.94%, up from 5.45% in FY24, while the cost-to-income ratio improved to 57%.

The bank declared a dividend of ₹1/- per share, subject to shareholder approval. Total gross loans stood at ₹1,15,704 Crore, with secured loans contributing positively despite a decline in unsecured loans. The bank successfully raised ₹770 Crore in Tier II capital, leading to a solid capital adequacy ratio of 20.1%.

The economic outlook remains uncertain due to global factors, but AU Small Finance Bank is well-positioned to navigate these challenges, focusing on sustainable growth and financial inclusion efforts. Stakeholders are advised to monitor the bank’s strategic initiatives and performance trends closely.