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