AU Small Finance Bank Limited — PPTs, 19-07-2025: Investor Presentation

Here is the summary based on your preferences:

**1. Financial Highlights:**

Deposits grew 31% YoY to ₹1,27,696 Cr; cost of funds 7.08%. Advances rose 18% YoY to ₹1,17,624 Cr, led by secured loans. PAT increased 16% YoY to ₹581 Cr (1.5% RoA), but NIM compressed to 5.4%. GNPA hit 2.47%, reflecting seasonality and unsecured segment stress.

**2. Strategic Initiatives & Growth Drivers:**

The bank consolidated Mumbai operations. An RBI evaluation for a Universal Banking License is ongoing. Digital tools are enhancing loan processing. Plans include expanding product penetration via existing touchpoints and increasing MFI portfolio CGFMU coverage.

**3. Business Developments:**

Unsecured loan segments saw de-growth. Credit card performance is improving with new partnerships. The bank is expanding AD-I business and growing insurance/wealth product penetration.

**4. Market Position & Competitive Advantage:**

Outperforming peers in deposit (+31% YoY) and loan (+18% YoY) growth, the bank leverages deep semi-urban/rural distribution, strong underwriting, and resilient tech. Diversified MFI portfolio adds stability.

**5. Investor Implications:**

Strong PAT growth and treasury performance indicate positive potential. Margin compression and elevated unsecured credit costs signal execution risk to monitor. Robust capital and a potential Universal Banking License offer future value.