AU Small Finance Bank
Asset quality moderates: The bank has witnessed pressure on asset quality in Q1FY2026.
The fresh slippages of loans stood at Rs 1027 crore in Q1FY2026 compared with 894 crore in previous quarter and Rs 543 crore in the corresponding quarter last year. The recoveries, upgradations and write-off of NPAs stood at Rs 753 crore in Q1FY2026. The standard restructured loan book of the bank stood at Rs 234 crore end June 2025. Provision coverage ratio was steady at 83% at end June 2025 compared to 84% a quarter ago and 84% a year ago. The capital adequacy ratio of the bank stood at 19.4% with Tier I ratio at 17.5% at end June 2025.| Asset Quality Indicators: AU Small Finance Bank | ||||||||
| ? | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation | ? | |
| QoQ | YoY | ? | ||||||
| Gross NPA (Rs Crore) | 2751.32 | 2477.03 | 2335.51 | 1901.69 | 1613.18 | 11 | 71 | ? |
| Net NPA (Rs Crore) | 971.34 | 791.34 | 905.60 | 706.70 | 562.56 | 23 | 73 | ? |
| % Gross NPA | 2.47 | 2.28 | 2.31 | 1.98 | 1.78 | 19 | 69 | ? |
| % Net NPA | 0.88 | 0.74 | 0.91 | 0.75 | 0.63 | 14 | 25 | ? |
| % PCR | 83.00 | 84.00 | 80.00 | 82.00 | 84.00 | -100 | -100 | ? |
| % CRAR - Basel III | 19.42 | 20.06 | 18.01 | 18.51 | 20.11 | -64 | -69 | ? |
| % CRAR - Tier I - Basel III | 17.50 | 18.10 | 16.90 | 17.40 | 18.90 | -60 | -140 | ? |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
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Business Highlights:
Healthy business growth: The business of the bank has increased 27% YoY to Rs 239318 crore end June 2025, driven by 23% surge in advances to Rs 111622 crore. Deposits jumped 31% to Rs 127696 crore at end June 2025.
CASA deposits ratio eases: The CASA deposits of the bank increased 16% YoY to Rs 37241 crore at end June 2025. The current account deposits increased 34% to Rs 6348 crore, while saving account deposits moved up 13% to Rs 30893 crore end June 2025. The CASA ratio declined to 29.2% at end June 2025 compared to 32.9% at end June 2024, while it was steady from 29.2% a quarter ago. The term deposits have increased 39% to Rs 90455 crore end June 2025.
Healthy loan growth: Gross loan portfolio (GLP) stood at Rs 117624 Crore, registering a YoY growth of 18% compared to Rs 99792 Crore as on Q1FY25. Secured businesses (Retail + Commercial) grew by 22% YoY whereas Unsecured businesses (primarily MFI and Credit Card) de-grew by 23% YoY driven by cyclical slowdown in MFI, and calibration in credit card book.
Investment book of the bank increased 40% YoY to Rs 38344 crore at end June 2025.
Margins decline: The bank has shown 5 bps YoY rise in cost of deposits to 7.08%, while yield on advances declined 30 bps YoY to 14.10% in Q1FY2026. Thus, the NIM has declined 60 bps YoY, while fell 40 bps qoq to 5.40% in Q1FY2026.
Branch expansion: The bank has added 49 branches and 1 ATMs in Q1FY2026, taking overall tally to 2505 branches and 678 ATM`s end June 2025.
Book value of the bank stood at Rs 237.1 per share at end June 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 223.8 per share at end June 2025.
Quarterly Performance
NII growth ease as NIM declines: Bank has recorded 16% increase in the interest earned at Rs 4378.44 crore, while interest expenses increased 26% to Rs 2333.77 crore in Q1FY2026. NII improved 6% to Rs 2044.67 crore in the quarter ended June 2025.
Strong growth in non-interest income: Bank has posted strong 4% growth in core fee income to Rs 511 crore, while the treasury income zoomed 1479% to Rs 300 crore, leading to 59% surge in the overall non-interest income to Rs 810.61 crore in the quarter ended June 2025.
Expenses ratio improves: The operating expenses of the bank increased 4% to Rs 1543.07 crore, as employee expenses increased 10% to Rs 865.53 crore, while other expenses declined 2% to Rs 677.54 crore in Q1FY2026. Cost to income ratio improved to 54.0% in Q1FY2026 compared with 60.8% in Q1FY2025, helping the Operating Profit to increase 38% to Rs 1312.21 crore.
Provisions and contingencies surges: The bank has shown 89% surge in provisions to Rs 533.31 crore. The loan loss provisions zoomed 110% to Rs 525 crore, while standard asset provisions fell 72% to Rs 9 crore.
Effective tax rate declined to 25.4% in Q1FY2026 from 24.9% in Q1FY2025. Net Profit rose by 16% YoY to Rs 580.85 crore during quarter ended June 2025.
Financial Performance FY2025:
Bank has posted 42% increase in net profit to Rs 2182.73 crore in the year ended March 2025 (FY2025). The net interest income increased 55% to Rs 8011.58 crore, while non-interest income moved up 49% to Rs 2526.31 crore, pushing up net total income by 54% to Rs 10537.89 crore in FY2025. The operating expenses increased 34% to Rs 5880.41 crore, while provision and contingencies galloped 360% to Rs 1792.62 crore, allowing profit before tax to increase 38% to Rs 2864.86 crore in FY2025. The cost-to-income ratio improved to 55.8% in FY2025 compared to 64.0% in FY2024. An effective tax rate rose to 23.8% in FY2025 compared to 22.4% in FY2024. The net profit has increased 42% to Rs 2182.73 crore in FY2025.| AU Small Finance Bank: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 4378.44 | 3769.04 | 16 | 16063.73 | 10554.71 | 52 |
| Interest Expended | 2333.77 | 1848.46 | 26 | 8052.15 | 5397.63 | 49 |
| Net Interest Income | 2044.67 | 1920.58 | 6 | 8011.58 | 5157.08 | 55 |
| Other Income | 810.61 | 509.27 | 59 | 2526.31 | 1697.14 | 49 |
| Net Total Income | 2855.28 | 2429.85 | 18 | 10537.89 | 6854.22 | 54 |
| Operating Expenses | 1543.07 | 1478.12 | 4 | 5880.41 | 4388.00 | 34 |
| Operating Profits | 1312.21 | 951.73 | 38 | 4657.48 | 2466.22 | 89 |
| Provisions & Contingencies | 533.31 | 282.85 | 89 | 1792.62 | 389.99 | 360 |
| Profit Before Tax | 778.90 | 668.88 | 16 | 2864.86 | 2076.23 | 38 |
| EO | 0.00 | 0.00 | - | 0.00 | -76.80 | - |
| PBT after EO | 778.90 | 668.88 | 16 | 2864.86 | 1999.43 | 43 |
| Provision for tax | 198.05 | 166.32 | 19 | 682.13 | 464.71 | 47 |
| PAT | 580.85 | 502.56 | 16 | 2182.73 | 1534.72 | 42 |
| EPS*(Rs) | 31.2 | 27.0 | ? | 29.3 | 22.9 | ? |
| Equity | 745.4 | 743.2 | ? | 744.5 | 669.2 | ? |
| Adj BV (Rs) | 223.8 | 199.9 | ? | 217.9 | 180.2 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year post EO and relevant tax. Face Value: Rs 10, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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