AU Small Finance Bank Reports 18% Profit Rise Amid Growing Core Income

AU Small Finance Bank reported an 18% profit increase in March Q4 FY25, highlighting core income growth. Despite improved earnings, asset quality declined, with gross NPA rising to 2.28%. Merged with Fincare SFB in 2024, AU SFB aims to navigate global economic challenges with strengthened government measures.

AU Small Finance Bank has reported a significant 18% rise in profit for the March quarter of FY25, reaching Rs 504 crore, largely driven by a boost in core income. This marks an increase from the Rs 428 crore recorded in the same quarter the previous year.

The bank's total income rose sharply to Rs 5,031 crore from Rs 3,385 crore in Q4FY24, as per its regulatory filing. Meanwhile, Net Interest Income saw a substantial 57% growth to reach Rs 2,094 crore, and the Net Interest Margin expanded to 5.8% from 5.1% in Q4FY24.

Despite these financial gains, AU Small Finance Bank faced a downturn in asset quality, with gross NPA increasing to 2.28% by March 2025. However, the bank remains optimistic as it enters FY26, leveraging supportive government and RBI policies amidst global economic uncertainty.

(With inputs from agencies.)