AU SFB Q4 Results: Net profit beats estimate, dips QoQ; NII sees steady growth

AU Small Finance Bank reported a sequential decline of 4.7% in net profit for Q4 FY25, coming in at ₹503.7 crore compared to ₹528.4 crore in Q3. However, the profit was up 18% year-on-year.

Net interest income (NII) grew 3.5% quarter-on-quarter to ₹2,093.9 crore, surpassing CNBC-TV18’s estimate of ₹2,070.1 crore. On a year-on-year basis, NII rose 57%, supported by strong traction in both deposits and advances.

Asset quality showed marginal improvement. Gross NPA ratio stood at 2.28%, down from 2.31% in Q3, while net NPA ratio improved to 0.74% from 0.91%. Provisions rose sharply to ₹635.1 crore from ₹501.7 crore in the previous quarter.

Other income surged 41% YoY to ₹761 crore, while net interest margin (NIM) for the quarter expanded to 5.8%, up from 5.1% a year ago. The bank’s return on assets (ROA) and return on equity (ROE) stood at 1.4% and 11.9%, respectively.

Commenting on the results, Sanjay Agarwal, Founder, MD & CEO, noted the macroeconomic headwinds including tight liquidity and a challenging credit environment, but expressed confidence in the bank’s performance amid sectoral pressures.

“We made meaningful progress on productivity and efficiency, which enabled us to deliver stronger profitability—even amid a credit cycle in unsecured businesses,” he said.

Shares of AU Small Finance Bank closed 1.6% lower at ₹617 ahead of the results.