AU Small Finance Shares Rose 2%: NII and NIM Grew in Q4FY25, Declared Final Dividend

On April 23, 2025, AU Small Finance Bank shares (AU SFB) rose ~2% in morning trade, reaching a day high of ₹635.40 at 09:20 AM, after opening at ₹621.00. The gain in AU SFB share price follows the release of results for the quarter (Q4FY25) and year (FY25) ended March 31, 2025. The bank recorded strong performance in FY25 in the backdrop of a challenging macroeconomic environment. The AU SFB board approved a dividend of ₹1/- per share (10% of face value) for FY 2024-25, subject to shareholders’ approval. 

Q4 FY25 Performance Overview

The Bank delivered a strong performance in Q4 FY25, showcasing robust growth across key financial metrics. Net Interest Income (NII) surged by 57% year-on-year to ₹2,094 crore, up from ₹1,337 crore in Q4 FY24. Net Interest Margin (NIM) expanded to 5.8%, up from 5.1%, reflecting better interest income management.

FY25 Performance Highlights

In FY25, the Bank demonstrated impressive financial strength, with solid growth across earnings and profitability metrics. Net Interest Income (NII) climbed 55% year-on-year to ₹8,012 crore, up from ₹5,157 crore in FY24, while Other Income rose 49% to ₹2,526 crore from ₹1,697 crore. Pre-Provisioning Operating Profit (PPoP) posted an 86% YoY increase, reaching ₹4,581 crore compared to ₹2,466 crore last year. Net Profit stood at ₹2,106 crore, marking a 32% YoY growth over FY24’s ₹1,592 crore (₹1,535 crore including exceptional items).

Advances and Deposit Growth

The Bank’s Gross Loan Portfolio (GLP) reached ₹115,704 crore in FY25, reflecting a healthy 20% year-on-year growth based on merged figures, and a 6.2% increase quarter-on-quarter. Growth was primarily driven by secured lending, which rose 25.3% YoY and 8.1% QoQ, highlighting the Bank’s strategic focus on asset-backed segments. The Bank continued to strengthen its deposit base in FY25, with Total Deposits increasing by 27% year-on-year based on opening merged financials, and 10.7% quarter-on-quarter.

Also Read: AU Small Finance Bank Share Price Rises 5% After Strong Q4 Update

Conclusion

AU Small Finance Bank delivered a strong and well-rounded performance in FY25, despite navigating a challenging macroeconomic landscape marked by subdued GDP growth, tight liquidity, a tough credit environment, persistent inflation, and elevated interest rates. This performance was underpinned by disciplined underwriting practices, effective cost of funds management, and continued efforts to control operational expenses.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.