AU Small Finance Bank Q4 Results: Profit rises by 18% to Rs 504 crore

AU Small Finance Bank Q4 Results: AU Small Finance Bank on Tuesday reported 18 per cent rise in profit at Rs 504 crore for March quarter FY25 on account of increase in core income. The bank's net profit was Rs 428 crore in the year-ago quarter.

During the latest fourth quarter, the bank's total income increased to Rs 5,031 crore from Rs 3,385 crore in Q4FY24, AU Small Finance Bank said in a regulatory filing.

Net Interest Income (NII) grew 57 per cent to Rs 2,094 crore compared to Rs 1,337 crore in the year-ago period, it said.

Net Interest Margin (NIM) for Q4FY25 stood at 5.8 per cent compared to 5.1 per cent in Q4FY24, it said.

Net profit of the bank in full financial year 2024-25 rose 32 per cent to Rs 2,106 crore from Rs 1,591 crore in the previous fiscal.

The Jaipur-based bank declared a dividend of Re 1 per share for FY25 subject to shareholders' approval.

However, the bank witnessed deterioration in its asset quality with gross NPA (non-performing asset) at 2.28 per cent in March 2025 as against 1.67 per cent in March 2024.

Similarly, Net NPA rose to 0.74 per cent of net advances as against 0.55 per cent in the year-ago period.

As a result, provisions and contingency increased significantly to Rs 635 crore from Rs 118 crore in the fourth quarter of FY25.

"As we enter FY26, the economic outlook remains uncertain, driven largely by global factors such as tariff war and geopolitical developments," said AU Small Finance Bank MD & CEO Sanjay Agarwal.

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, he said.

AU Small Finance Bank (AU SFB) in April 2024 amalgamated Fincare Small Finance Bank (Fincare SFB), marking the first such consolidation in the sector.

In an all-stock merger deal first announced on October 29, 2023, where the shareholders of Fincare SFB received 579 shares in AU SFB for every 2,000 equity shares held in Fincare SFB, the merger received final approval from RBI on March 4, 2024, with the effective date of April 1, 2024.