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AU Small Finance Bank Results: Latest Quarterly Results & Analysis

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Au Small Finance Bank Ltd. 21 Jul 2025 11:54 AM
Result PDF

Q1FY26 Quarterly Result Announced for Au Small Finance Bank Ltd.

Au Small Finance Bank announced Q1FY26 results

  • The Bank’s Net Interest Income (NII) grew 6% YoY to Rs 2,045 crore for Q1FY26 compared to Rs 1,921 crore in Q1FY25.
  • Other income increased by 59% YoY, aided by higher treasury income, to Rs 811 crore in Q1FY26 compared to Rs 509 crore in Q1FY25.
  • Operating expenses grew by 4% YoY to Rs 1,543 crore for Q1FY26 compared to Rs 1,478 crore in Q1FY25.
  • The Bank’s pre-provisioning operating profit (PPoP) for Q1FY26 grew by 38% YoY to Rs 1,312 crore compared to Rs 952 crore in Q1FY25.
  • PAT was up 16% YoY for Q1FY26 at Rs 581 crore vs Rs 503 crore in Q1FY25.
  • Net Interest Margin (NIM) for Q1FY26 declined by ~38 bps at 5.4% compared to 5.8% in Q4FY25.
  • Cost to Income ratio improved to 54.0% in Q1FY26 vs 60.8% in Q1FY25.
  • The Return on Asset (ROA) and Return on Equity (ROE) for Q1FY26 stood at 1.5% and 13.3% respectively on annualised basis.
  • Earnings Per Share (EPS) for Q1 at Rs 7.8 grew by 15% YoY whereas Book Value Per Share (BVPS) at Rs 239 grew by 14% YoY.
  • Deposits:
    • Total Deposits stood at Rs 1,27,696 crore, registering a YoY growth of 31% compared to Rs 97,290 crore as on Q1FY25.
    • CASA deposits grew by 16% YoY to Rs 37,241 crore with CASA ratio at 29.2%.
    • Current deposits have grown by 34% YoY to Rs 6,348 crore and Savings deposits have grown by 13% YoY to Rs 30,983 crore respectively.
    • Stable deposits (CASA Retail TD Non-callable Bulk TD) now stand at 79% of total deposits.
    • Cost of Funds (CoF) declined by 6 bps in the current quarter to reach 7.08% for Q1FY26 from 7.14% for Q4’FY25 whereas incremental CoF was 7.08%, a decline of 62 bps in the current quarter.
  • Advances:
    • Gross loan portfolio (GLP) stood at Rs 117,624 crore, registering a YoY growth of 18% compared to Rs 99,792 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.
  • Asset Quality:
    • Gross NPA stood at 2.47% and Net NPA stood at 0.88% in Q1FY26 vs 2.28% and 0.74% in Q4FY25.
    • Additionally, Bank carries Rs 41 crore of floating provisions and Rs 17 crore of contingency provisions towards the MFI portfolio.
    • Net credit cost for Q1FY26 is at 0.34% on average total Assets and 0.46% on average GLP.
    • Provision coverage ratio including technical write-off stood at 83%.

Result PDF

Result PDF

Au Small Finance Bank announced Q4FY25 & FY25 results

Q4FY25 Financial Highlights:

  • The Bank’s Net Interest Income (NII) grew 57% YoY to Rs 2,094 crore compared to Rs 1,337 crore during Q4FY24.
  • Other Income grew by 41% in Q4FY25 to Rs 761 crore compared to 541 crore in Q4FY24.
  • The Bank’s pre-provisioning operating profit (PPoP) for Q4FY25 grew 99% YoY to Rs 1,292 crore compared to Rs 650 crore in Q4FY24.
  • PAT was up 18% YoY for Q4FY25 at Rs 504 crore vs Rs 428 crore in Q4FY24.
  • Cost to Income improved to 55% in Q4FY25 vs 65% in Q4FY24.
  • Net Interest Margin (NIM) for Q4FY25 stood at 5.8% compared to 5.1% in Q4FY24.
  • The Return on Asset (ROA) and Return on Equity (ROE) for Q4FY25 stood at 1.4% and 11.9% respectively.

FY25 Financial Highlights:

  • The Bank’s Net Interest Income (NII) grew 55% YoY to Rs 8,012 crore compared to Rs 5,157 crore during FY24.
  • Other Income grew by 49% in FY25 to Rs 2,526 crore compared to 1,697 crore in FY24.
  • The Bank’s pre-provisioning operating profit (PPoP) for FY25 grew 86% YoY to Rs 4,581 crore compared to Rs 2,466 crore in FY24.
  • The net profit at Rs 2,106 crore FY25 grew 32% YoY compared to Rs 1,592 crore in FY24 (FY24 PAT including exceptional item was at Rs 1,535 crore).
  • Cost to Income decline by ~7% from 64% in FY24 to 57% in FY25.
  • Net Interest Margin (NIM) for FY25 stood at 5.94% compared to 5.45% in FY24.
  • Return on Asset (ROA) and Return on Equity (ROE) stood at 1.5% and 13.1% respectively.
  • EPS at Rs 28 grew by 19% YoY whereas Book Value Per Share (BVPS) at Rs 231 grew by 23%.
  • Advances:
    • Gross loan portfolio (GLP) stood at Rs 115,704 crore, registering a YoY growth of 20% from merged numbers and QoQ growth of 6.2%.
    • Secured businesses were up 25.3% YoY and 8.1% QoQ.
    • Unsecured businesses de-grew 17.6% YoY and by 10.1% QoQ and driven by industry wide deleverage in MFI and corrective actions taken in Credit Cards.
    • Yield on gross advances was stable at 14.4%.
    • 82% of new disbursements were in high-RoA businesses for FY25
  • Deposits:
    • Total Deposits grew 27% YoY compared to opening merged financials and 10.7% QoQ; CASA ratio at 29% as on Mar’25.
    • CA/SA deposits have grown by 28%/12% YoY and 24%/2% QoQ.
    • CASA Retail TD stands at 62% and CASA Retail TD Non-callable Bulk TD is 78% of total deposits.
    • Cost of Funds (CoF) for FY25 at 7.07%; CoF for Q4FY25 increased by 7 bps QoQ to 7.14%
  • Balance Sheet:
    • Credit Deposit (CD) ratio as on 31st March 2025 stood at 79% excluding advances created out of refinance from Development Finance Institutions (DFI) like NABARD, SIDBI, NHB, MUDRA.
    • The Bank had a Liquidity Coverage Ratio (LCR) of 116% for Q4FY25 and continues to maintain additional liquidity buffers in the form of high-quality, liquid, non-SLR investments, which are not part of LCR computation.
    • Shareholder’s fund of the Bank has now reached Rs 17,166 crore.
    • Capital adequacy ratio as on 31st Mar’25 stands at 20.1% and Tier I capital adequacy stands
  • Asset Quality:
    • GNPA improved to 2.28% vs 2.31% in Q3 and NNPA improved to 0.74% vs 0.91% in Q3.
    • Additionally, Bank carries Rs 17 crore of contingency and Rs 41 crore of floating provision.
    • Net credit cost for FY25 is at 1.3% of the Total Assets.
    • Provision coverage ratio including technical write off improved to 84% from 80% in Q3FY25.

Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank said: ““We are coming out of a tough macroeconomic environment marked by persistent inflation, tight liquidity, a challenging credit environment, and lower-than-expected GDP growth. As we enter FY26, the economic outlook remains uncertain, driven largely by global factors such as tariff war and geopolitical developments. 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.

Against this backdrop, we have delivered a strong performance with higher than sectoral growth in both deposits and advances. We made meaningful progress on productivity and efficiency, which enabled us to deliver stronger profitability—even amid a credit cycle in unsecured businesses of microfinance and credit cards.

As we celebrate 30 years of AU and 8 years of our banking journey, we remain focused on building an institution that can truly scale with sustainability. I want to express my sincere gratitude to all stakeholders for their continued trust and support. We remain committed to driving financial inclusion, empowering individuals and businesses, and contributing towards strengthening India’s economic resilience and advancing sustainable growth”.

Result PDF

Au Small Finance Bank announced Q3FY25 results

  • Net Interest Income (NII) grew 53% YoY to Rs 2,023 crore compared to Rs 1,325 crore during Q3FY24.
  • Other Income grows by 40% YoY driven by fee income, cross sell, and credit cards.
  • Operating profit (PPoP) grows 85% YoY to Rs 1,205 crore supported by growth in income and calibrated Opex.
  • PAT grows 41% YoY to Rs 528 crore for Q3FY25 with annualized RoA of 1.5% and RoE of 13.0%.
  • Cost of Funds increased by 2 bps during the quarter to 7.06%.
  • Net Interest Margin (NIM) improved to 5.9% YoY from 5.5% in Q3FY24.
  • Cost to Income ratio reduced by 886 bps YoY to 54.4% for Q3FY25.
  • CD ratio as on 31 st December 2024 stood 81% excluding advances created out of refinance from DFIs.
  • Gross loan portfolio stood at Rs 1,08,921 crore, registering a YTD growth of 12.9%.
  • Total deposits stood at Rs 1,12,260 crore, registering a YTD growth of 14.9%.
  • CASA for the quarter stood at 31%; CASA Retail term deposit at 65%; and CASA Retail TD noncallable bulk deposit at 80%.
  • PCR at 80% including technical write-off; GNPA ratio as on 31st Dec’24 is 2.31% and NNPA ratio at 0.91%.
  • For 9M’FY25, EPS grew by 24% YoY whereas Book Value Per Share (BVPS) grew by 23% in same time.
  • Bank now has total 1.1 Cr customers; serves them through a total 2,400 touchpoints across 21 states and 4 UTs with total strength of 49K employees.

Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank said: “The economy saw some bounce back during festive season, however the momentum slowed down towards the latter half of the quarter. Overall economic activity whilst better than H1, remains below market expectations. Tight liquidity and persistent inflation continue to pose challenge to deposit growth and interest rates”

Amidst this backdrop and in a highly competitive market, our performance in the first 9 months of the financial year has been resilient. We continue to grow at higher rates than the industry across both advances and deposits. Our secured assets franchise remains in a very good shape, however Microfinance business continues to see elevated credit cost and degrowth in line with the industry. We remain focused on empowering individuals and businesses, contributing to India’s economic resilience and sustainable growth and I am thankful to the Government for supporting the MSME and Micro credit sector with various guarantee schemes”.

Result PDF

Au Small Finance Bank announced Q2FY25 results

Financial Highlights:

  • Net Interest Margin increased by 5bps bps to 6.1% in Q2FY25 from 6.0% in Q1FY25.
  • Cost of Funds increased by 1 bps during the quarter to 7.04% in Q2FY25.
  • Disbursement share of High RoA assets stood at 81% of total disbursement during the quarter.
  • Net Interest Income (NII) grew 58% YoY to Rs 1,974 Crore compared to Rs 1,249 Crore during Q2FY24.
  • Other Income grows by 57% YoY driven by fee income, third-party product distribution and credit cards.
  • PPoP grows 80% YoY to Rs 1,132 crore supported by Other income, expanded NIM and calibrated Opex.
  • PAT grew 42% YoY to Rs 571 crore for Q2FY25 with annualized RoA of 1.7% and RoE of 14.5%.
  • Cost to Income ratio reduced by 535 bps YoY to 56.7% for Q2FY25.
  • CD ratio as on 30th September 2024 stood at 86% as compared to 92% as on Q1FY25.
  • Gross loan portfolio crossed milestone of one lakh crore to stand at Rs 1,05,031 crore, registering a QoQ growth of 5.3% and YTD growth of 8.9%.
  • Total deposits crossed milestone of one lakh crore to stand at Rs 1,09,693 crore, registering a QoQ growth of 12.7% and YTD growth of 12.3%.
  • CASA for the quarter stood at 32%; CASA Retail term deposit at 67%; and CASA Retail TD noncallable bulk deposit at 81% o PCR at 82% including technical write-off; GNPA ratio as on Q2FY25 is 1.98% and NNPA ratio at 0.75%.
  • Bank now has total 109 lac customers; serves them through a total 2,408 touchpoints across 21 states and 4 UTs with total strength of ~48K employees.
  • Asset Quality:
    • GNPA increased to 1.98% (vs 1.78% in Q1) and NNPA increased to 0.75% (vs. 0.63% in Q1).
    • Banks credit cost for Q2FY25 stood at 0.28% of total average assets owing to stress in unsecured (MFI and Credit Card) where the current environment remains challenging with customer overleveraging being an industry wide issue. This has been exacerbated by lower disbursement / base effect.
    • Provision coverage ratio stood at 82% including technical write off.
  • Distribution:
    • We are now present in 21 states and 4 UTs with 2,408 physical touchpoints.
    • We now cater to 109 Lac customers with a total strength of 47k employees.
  • Credit Rating:
    • AA / Stable for Fixed deposit program by CRISIL.
    • AA/ Stable for Tier 2 Bonds by CRISIL, ICRA, India Ratings and CARE.
    • A1 for certificate of deposit program by CRISIL, India Ratings and CARE.

Sanjay Agarwal, MD & CEO, AU Small Finance Bank said: “First half of this financial year saw some discontinuity in business momentum with persistent inflation, general elections and various state elections as well as heat wave and unusual heavy rain in August. We have started to see early signs of pickup in economic activity over the last 3-4 weeks and remain optimistic of an improved operating environment in H2 as consumer confidence, rural demand and private investment picks up.

Amidst this macro backdrop, AU SFB delivered another quarter of consistent performance across most of the parameters with sustainable growth in our assets and profitability. Our double-digit deposit growth on QoQ basis with stable Cost of Funds remains the highlight of the quarter. We aim to deliver all our articulated strategy of AU@2027 by focusing on our margins, sustained fee income growth and calibrating operating expenses of the book. This quarter, we applied to RBI for voluntary transition to universal bank which will further Improve our brand acceptance with higher perception of safety and trust and thereby enable us for the next phase of growth and buildout of a “forever bank””.

Result PDF

Au Small Finance Bank announced Q1FY25 results:

  • Net Interest Margin increases to 6% in Q1FY25 from 5.7% in Q1FY24
  • Cost of Funds reduced by 7 bps during the quarter to 7.03% in Q1FY25
  • Disbursement share of High RoA assets increased to 82% of total disbursement during the quarter
  • Net Interest Income (NII) grew 54% YoY to Rs 1,921 crore compared to Rs 1,246 crore during Q1FY24
  • Core Other Income grew by 77% YoY driven by Fee income, third party products and credit cards
  • PPoP grew by 81% YoY to Rs 988 crore
  • PAT grew 30% YoY to Rs 503 crore for Q1FY25 with annualized RoA of 1.6% and RoE of 13.2%
  • Cost to Income ratio reduced by 509 bps YoY to 59.9%
  • Gross advances and total deposits stood at Rs 90,702 crore and Rs 97,290 crore respectively
  • CASA for the quarter stood at 33%; CASA plus Retail term deposit at 70%; and CASA plus Retail term deposit plus non-callable bulk deposit at 85%
  • PCR at 84% including technical write-off; GNPA ratio as on 30th Jun’24 is 1.78% with no specific pockets of stress or any EWS in the portfolio
  • Created a contingency buffer of Rs 17 crore on the Microfinance portfolio, in line with the guidance of taking Microfinance credit cost at 3%
  • Bank now has total 108 lac customers; serves them through a total 2,414 touchpoints across 21 states and 4 UTs with total strength of 46K employees
  • Calibrated credit card issuance to 75,000, in line with AU@2027 strategy
  • Fincare SFB merged into AU SFB w.e.f. 1st April 2024 and the integration continues to progress welland remains on schedule without any disruption or surprises

Commenting on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, “India's economy continued to show robust growth in the first quarter of the current fiscal year. This was driven by strong private consumption and government spending, particularly in infrastructure. Overall, the Indian economy displayed resilience and outperformed many of its peers.

Amidst this macro backdrop, AU SFB delivered another quarter of consistent performance across parameters with sustainable growth in our assets, disbursement yields and profitability. Our team’s dedication and our customer-centric approach have contributed to our positive performance this quarter. I am excited that the board has given approval for making our application to the RBI, for transitioning to a universal bank, opening new avenues for our growth and expansion.

Going forward, we will continue to focus on sustainable growth, aiming to improve our balance sheet and making progress on our articulated strategy for AU@2027”

Result PDF

AU Small Finance Bank announced Q4F24 & FY24 results:

Q4FY24 Financial Highlights:

  • Net Interest Income (NII) grew 10% YoY to Rs 1,337 crore, compared to Rs 1,213 crore in Q4FY23.
  • Other Income growth for Q4FY24 is at 67% YoY at Rs 556 crore.
  • PPOP grew by 16% and now stands at Rs 664 crore compared to Rs 571 crore in Q4FY23.
  • Net profit excluding exception items at Rs 428 crore in Q4FY24 up by 1% YoY compared to Rs 425 crore in Q4FY23 and up by 14% QoQ compared to Rs 375 crore in Q3’FY24.
  • RoA and RoE excluding exceptional items stands at 1.6% and 13.9% respectively.
  • Exceptional Item - Bank has taken a one-time pre-tax exceptional impact of Rs 77 crore in Q4FY24 towards Fincare merger related expenses.

FY24 Financial Highlights:

Profitability
• NII grew 17% YoY to Rs 5,157 crore in FY24 compared to Rs 4,425 crore in FY23.
• Other Income growth for FY24 is at 69% YoY driven by fee income from Treasury fee, third-party product distribution and credit cards.
• PPOP grew by 25% to Rs 2,515 crore from Rs 2,019 crore in FY23.
• Net profit excluding exceptional items at Rs 1,592 crore in FY24 is up by 12% YoY compared to Rs 1,428 crore in FY23.
• RoA and RoE excluding exceptional items for FY24 stands at 1.6% and 13.5% respectively.
• Net Interest Margin (NIM) for FY24 stood at 5.45%.
• Capital Adequacy ratio stands at 20.06%.

Deposits
• Total deposits reached Rs 87,182 crore compared to Rs 69,365 crore in Q4FY23; Growth of 26% YoY and 9% QoQ.
• CASA deposits increased by 9% YoY to Rs 29,126 crore compared to Rs 26,660 crore in Q4FY23; CASA ratio stand at 33% and CASA Retail deposits stand at 64%.

Advances
• Bank’s Gross advances grew by 25% YoY to Rs 73,999 crore in Q4FY24 compared to Rs 59,158 crore in Q4FY23; Credit to Deposit ratio stands at 84%.
• Of the total advances, Vehicle Loan contributes 30% and Micro Business Loans (MBL), Home Loan as well as Commercial Banking Loans contribute 28%, 8% and 25% respectively.

Asset Quality
• Gross non-performing assets (GNPA) stood at 1.67% in Q4FY24 vs 1.66% in Q4FY23 and 1.98% in Q3FY24; Provisioning Coverage Ratio (PCR) remained stable at 76%.
• Bank is carrying provisions of Rs 111 crore towards standard restructured book and floating provisioning.

Commenting on the results, Sanjay Agarwal, Founder, MD & CEO, of AU Small Finance Bank, said, "India's economic landscape is surging forward, with GDP growth projected to be among the highest globally. This robust growth fuels optimism for businesses and entrepreneurs like me. With a robust GDP, controlled inflation, and a continuously improving regulatory environment, India's macro picture paints a bright future for its economy. I'm really excited about the opportunity and scope for execution that this growth provides to an institution like AU. This period of growth also coincides with our own philosophy of building AU forever. The first phase of our forever journey, that is AU @ 2027, is the foundational period of first 10 years of our banking journey.

Our performance in the current quarter has remained absolutely on track with deposit growth outpacing advances growth, margins broadly remaining within our guided range and asset quality continuing to be robust. I am happy that our merger with Fincare has received all regulatory approvals in record time, and we are now operating as a merged entity. We now have 2,383 physical touchpoints across India and apart from a brick-and-mortar presence, we have a body and soul present in all these locations, giving us an extensive network which ensures we're closer to our customers than ever before and fast forwards our distribution build-out by many years”.

Result PDF

Au Small Finance Bank announced Q2FY24 results:

  • Pre-provisioning operating profit up 30% YoY to Rs 648 crore; Net interest income up 15% to Rs 1,249 crore and Net Interest Margin for Q2FY24 is at 5.5%
  • Overall deposits have now crossed Rs 75,000 crore mark in this quarter growing 30% YoY and 9% QoQ
  • CASA deposit grew by 6% QoQ to Rs 25,666 crore; CASA ratio stands at 34% and CASA Retail TD mix at 66%
  • Bank has now crossed Rs 1,00,000 crore mark of balance sheet including securitized book
  • Bank acquired 3.65 lakh customers in Q2FY24 of which 45% was via digital products and channels
  • Total credit cards crossed 7 Lacs whereas deposits sourced via Video Banking crossed Rs 1,400 crore
  • Gross advance up 24% YOY and 2% QoQ to Rs 65,029 crore - a growth of 10% since March’23; The Bank securitised asset portfolio worth Rs 2,922 crore during Q2FY24
  • GNPA% at 1.91% increased by 1 bps YoY, NNPA% at 0.60%; Standard restructured advances declined to 0.8% from 1.0% sequentially
  • Provisioning Coverage Ratio (PCR) remain stable at 69% (73% including technical write-off); Bank is carrying additional provision of Rs 96 crore against contingency and standard restructured assets
  • Bank has hiked FD rates and SA rates up by 25 basis points in selective buckets during the quarter
  • Bank launched “Zenith Credit Card”, a super-premium Metal Credit Card
  • Bank has added Max Life Insurance, Bajaj Alliance Life Insurance and Star Health Insurance as Bancassurance partner to further strengthen Bank’s third-party product offering to its customers

Commenting on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, “The global environment remains challenging with uncertainties around geo-politics, supply chain disruptions and inflation continuing to put persistent pressure on interest rates. The Indian economic environment looks strong and resilient and continues to provide a multitude of growth opportunities across various sectors. However, challenges around inflation, liquidity and disruptions in weather patterns remain, warranting caution as a lender and we remain watchful and responsive in caliberating our strategy.

In this backdroup, our performance in Q2FY24 was resilient and sustainable with growth across deposits, digital and advances. This resilience is further complemented by the positive outlook in AU markets, where there are promising prospects for growth and market penetration. Our key strategic focus is on building lowcost retail deposits, even in the current environment of elevated costs and intense competition. Our newely created 'Swadesh Banking' group is focused on furthering our financial inclusion strategy by penetrating deeper in rural India, where a significant unbanked population resides. Additionally, our new brand campaign “Soch Badlo aur Bank Bhi” will continue to establish a robust brand presence and foster top-of-mind recall.

While being watchful, I am quite optimistic about the Indian economy in the long term and the banking sector looks poised for sustained period of growth. The business is excelling on all fronts, instilling great confidence in us to affirm our FY24 guidance set forth at the start of this fiscal year and we continue to focus on sustainable growth, aiming to further fortify our balance sheet.”

 

Result PDF

Au Small Finance Bank announced Q1FY24 results:

  • Net profit grows by 44% YoY to Rs 387 crore; Advances grow by 29% YoY and Deposits grow 27% YoY; RoA and RoE stood at 1.7% and 13.8% respectively
  • Net Interest Income (NII) grew 28% YoY to Rs 1,246 crore compared to Rs 976 crore during Q1FY23.
  • Net Interest Margin (NIM) for Q1FY24 stood at 5.7% compared to 5.9% in Q1FY23
  • Bank acquired 3.75 lakh customers in Q1FY24 of which 45% was via digital products and channels
  • Total Credit cards reached 6.1 lakhs whereas deposits sourced via Video Banking crosses Rs 1,300 crore
  • Pre-provisioning Operating profit up 39% YoY to Rs 546 crore
  • Gross advances up by 29% YoY to Rs 63,635 crore
  • Total deposits up by 27% YoY to Rs 69,315 crore; CASA ratio stands at 35% while CASA Retail Term Deposit stood at 68%
  • Total Capital Adequacy Ratio was 21.5% and Tier-1 ratio was 19.9%, excluding profits for Q1FY24
  • GNPA% at 1.76% decreased by 20 basis points YoY, NNPA% at 0.55%
  • Provision coverage ratio stands at 73%; Bank is carrying additional provisions of Rs 128 crore against contingency and against standard restructured assets
  • Opened 11 new physical touchpoints taking total touchpoints to 1,038 across 21 states and 3 UTs

Commenting on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, “The first quarter of FY24 saw improved macro environment with moderating inflation, narrowing current account deficit and rising foreign exchange reserves. The rural economy also continued to recover and the monsoon is likely to support the credit demand in rural and semi-urban areas. I am quite optimistic about the Indian economy and the banking sector looks poised for sustained period of growth.

Amidst this macro backdrop, AU SFB delivered another quarter of consistent performance across parameters with sustainable growth in our assets, deposits and profitability despite some impact on our margins due to deposit repricing and negative carry from excess liquidity buffers. The strong performance in this quarter is a testimony to our highly competent and empowered team and our business model which allows us to capture customer imagination, which in turn allows us to service our customers in an innovative manner.

Like every other quarter, we have continued to strive to improve the digital adoption by our customers and 45% of our new customer acquisition has been via digital products and channels like ‘AU 0101', which is among the top-rated banking apps in the country.

Going forward, we will continue to focus on sustainable growth, aiming to improve our balance sheet size while penetrating deeper into rural India, where a significant unbanked population resides.”

Result PDF

AU Small Finance Bank announced FY23 & Q4FY23 results:

  • FY23:
    • Bank’s total balance sheet grew by 31% YoY to Rs 90,216 crore
    • Deposits grew by 32% YoY to Rs 69,365 crore; CASA at 38.4% as against 37.3% as on 31st Mar’22
    • Cost of Funds increased by 1 bps YoY to 5.96%
    • 88% of loan book is retail in nature and 92% of loan book is secured
    • Ratio of fixed rate to floating rate loans has decreased to 66:34, from 74:26 as on Mar’22
    • Total income stood at Rs 9,240 crore, up 34% YoY; NII at Rs 4,425 crore, up 37% YoY
    • Net profit for the full year FY23 is at Rs 1,428 crore, up 26% YoY
    • NIM for FY23 was maintained at 6.1% (including assigned/securitized book)
    • ROA stood at 1.8% and ROE at 15.4% even as we continue to invest significantly in people, digital, branding, products and distribution to build a future ready bank
    • Bank’s Asset quality improved significantly with GNPA at 1.66% in FY23 vs 1.98% in FY22
    • Net NPA stood at 0.42% of net advances in FY23 vs 0.50% in FY22
  • Q4FY23:
    • Net profit for the quarter rose by 23% YoY to Rs 425 crore
    • Net Interest Margin (NIM) for Q4FY23 at 6.1% vs. 6.3% in Q4FY22
    • ROA for Q4FY23 stood at 2.0% and ROE at 15.8%
    • Cost of funds for Q4FY23 increased by 32 bps to 6.29% vs. 5.97% in Q3FY23
  • Bank declares Dividend of Re 1/- per equity share (10% of face value) for FY23

Commenting on the performance, Mr. Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, "The Bank has delivered another quarter and another year of consistent performance across all parameters despite the challenges around inflation, liquidity leading to higher interest rates. Amidst a difficult market, we have managed to grow our deposit book while keeping our CASA ratio stable and making our deposits more granular and retail. Our asset quality has also improved further this year with net NPA coming down to 0.4%. Our focus on governance remains our top priority and with the addition of 3 new independent directors during the year, the total Board strength has now reached to 10 directors with 8 of them being Independent Directors including 2 women directors. As a Bank, we are positioning ourselves to take advantage of the India opportunity over the next decade – be it products, technology, distribution or manpower. We continue to lay foundation of building a sustainable and well governed, pan-India Bank with a generational mindset having practices and processes which are Standardised, Scalable and Sustainable.

As AU Bank completes 6th year as a Small Finance Bank and 28 years as an Institution, it gives me immense satisfaction and pride as a founder and an entrepreneur and receiving the Authorized Dealer Category – I license (AD-I) on our anniversary date of 19th April was the perfect gift that any Institution could have wished for. I would like to express my gratitude to the Government, RBI and other regulators for their support and guidance and to our Investors, customers, employees, and other stakeholders for their unwavering trust in AU. To express gratitude to our shareholders the Board has recommended a dividend of Rs. 1/- per equity share (10% of face value) for FY23”.

 

Result PDF

Au Small Finance Bank announced Q3FY23 results:

  • Q3FY23:
    • Business:
      • Bank’s total balance sheet grow by 4% QoQ and 17% YTD to Rs 80,703 crore
      • Deposits grew by 5% QoQ and 16% YTD to Rs 61,101 crore
      • CASA at 38% as against 42% as on Q2FY23 and 37% as on Q4FY22
      • Gross Advances grew by 7% QoQ and 20% YTD to Rs 56,335 crore; CD ratio at 91%
      • 90% of loan book is retail in nature and 93% of the loan book is Secured
      • Averaged Cost of Funds for Q3FY23 is at 6.0%
      • CRAR at 22.0% and Tier I at 20.0% as on 31st Dec 22; including interim profits, CRAR was at 24.2% and Tier 1 at 22.2% as on 31st Dec 22
    • Profitability:
      • Total income for the quarter stood at Rs 2,413 crore, up 8% QoQ and 36% YoY
      • NII at Rs 1,153 crore, up 6% QoQ and 41% YoY
      • Net profit stood at Rs 393 crore for Q3FY23, up 15% QoQ and 30% YoY
      • Net Interest Margin (NIM) for the quarter was stable at 6.2%
      • RoA stood at 2.0% and RoE at 15.2% even as we invest significantly in people, digital, branding, products and distribution to build a future ready bank
    • Asset quality:
      • Bank’s Asset quality improved on QoQ basis with GNPA at 1.81% vs 1.90% as on  Q2FY23
      • Net NPA was stable at 0.51%; Restructured advances declined to 1.4%
      • Provision coverage ratio at 72% against 71% as on Q2FY23; Including technical write-offs, the PCR was at 75%
      • Apart from provision of Rs 693 crore against GNPA pool, Bank has, additionally, maintained following provision buffer
        • Provision against restructured book at Rs 127 crore (16% of restructured book)
        • Contingency provision of Rs 98 crore (0.2% of advances)
        • Floating provision of Rs 41 crore (0.1% of advances)
        • Standard provisions of Rs 176 crore (0.3% of advances)
  • 9MFY23:
    • Profitability:
      • NII at Rs 3,212 crore, up 40% YoY
      • Total income for 9MFY23 stood at Rs 6,632 crore up 34% YoY
      • Net profit for 9MFY23 stood at Rs 1,003 crore, up 28% YoY
      • RoA stood at 1.8%, RoE at 14.8% for 9MFY23; RoE impacted due to capital raise in Aug 22
    • Digital and Payment business:
      • The Bank’s digital properties like AU 0101, Video Banking, Credit cards, UPI QR etc. continue to see strong momentum
      • Bank issued ~90K credit cards during the quarter taking the total live credit cards to 3.9 lacs; total installed UPI QR reach 8.7 Lac
      • 2.4 Lac Savings Account opened digitally via Video Banking since launch last year and total relationship value of these accounts now at Rs 1,000 crore

Commenting on the performance, Mr. Sanjay Agarwal, MD & CEO, AU Small Finance Bank said, “Q3FY23 was another quarter of strong and consistent performance across all key parameters supported by sustained underlying business momentum and strong capital base. Despite the challenging environment around inflation and liquidity, we were able to maintain margins, deliver growth in loan market share, improve asset quality, focus on productivity while achieving our highest ever quarterly profits.

Our constant endeavor is to be an increasingly sustainable Bank and we have recently announced a plethora of progressive HR policies, some of which are among the industry first like “Menstrual leave for women employees” and an “AU Forever Pass” for our outgoing employees. I am also pleased to share that AU has been recognized as a Great Place to Work for the 3rd consecutive year in a row and has been recognized for ‘Excellence in Corporate Governance’ by Institute of Company Secretaries of India (ICSI). We recently released our first Sustainability Report which is externally assured by PwC and marks another step in our sustainability journey.

I believe India is well placed in the post pandemic world. Our favorable demographics, stable democratic set up, and increasing impact of technological innovations like India Stack coupled with structural reforms are helping India emerge as a knowledge and technology leader in the world. Overall, our Bank is well positioned to capitalize on the emerging opportunities, and the recent acknowledgment as ‘Best Small Finance Bank’ by BT-KPMG will inspire us further”.

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