AU Small Finance Bank Limited — PPTs, 22-04-2025: Investor Presentation

**Financial Highlights**

AU Small Finance Bank has reported a robust performance for FY25, with net profit increasing by 32% YoY to ₹2,106 Cr and earnings per share (EPS) rising 19% YoY to ₹28. The net interest income (NII) surged 55% YoY to ₹8,012 Cr, while the cost-to-income ratio improved to 57% from 64% in FY24, highlighting enhanced operational efficiency. The return on assets (RoA) stood at 1.5%, despite higher credit costs.

**Strategic Initiatives and Growth Drivers**

The bank demonstrated strong deposit growth of 27% YoY, reaching ₹1,24,269 Cr, significantly outperforming the banking sector’s average of 10.1%. Advances grew by 20% YoY to ₹1,15,704 Cr, driven by secured retail assets and commercial banking. The successful integration of Fincare branches is ongoing, with plans to apply for a Universal Banking License.

**Business Developments**

AU Small Finance Bank's strategic focus includes expanding its retail portfolio, particularly in high-return assets. The invaluable support of over 50,000 employees and a customer base exceeding 1.1 crore strengthens its growth prospects.

**Market Position and Competitive Advantage**

With an increase in total assets to ₹1,57,846 Cr and a capital adequacy ratio of 20.1%, the bank maintains a solid balance sheet. It continues to focus on enhancing customer-centric initiatives and digital offerings, elevating its market position.

**Investor Implications**

Given these robust fundamentals and growth strategies, investors may view AU Small Finance Bank as an attractive opportunity for potential growth in the coming years, contingent on macroeconomic trends and market conditions.