AU Small Finance Bank Q4 Results: Net profit up 18% to ₹504 crore, revenue jumps 57%

AU Small Finance Bank on Tuesday reported an 18% rise in profit at ₹504 crore for the March quarter FY25 on account of an increase in core income.

The bank's net profit was ₹428 crore in the year-ago quarter.

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

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

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

Net profit of the bank in the full financial year 2024-25 rose 32% to ₹2,106 crore from ₹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% in March 2025 as against 1.67% in March 2024.

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

As a result, provisions and contingency increased significantly to ₹635 crore from ₹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.