AU Small Finance Bank Q3 net profit declines 7.5% QoQ to ₹528.4 crore, NII up 2.4%

AU Small Finance Bank, India's largest small finance bank, reported a 7.48% quarter-on-quarter decline in net profit to ₹528.44 crore in the third quarter of the financial year 2024-25, the company said in an exchange filing on Friday.

In Q2 FY25, the post-tax profit was ₹571.21 crore. Year-on-year (YoY), the profit increased by 40.8%.

Net interest income (NII) climbed 2.4% to ₹2,022.5 crore in Q3 FY25, as compared to ₹1,974.4 crore in the July-September quarter of the current fiscal.

The total income of AU Small Finance Bank increased 4% to ₹4,731.88 crore in the quarter under review as against ₹4,548.57 crore in the second quarter of FY25.

Gross non-performing assets (Gross NPA) stood at ₹2,335.5 crore in Q3 FY25, compared to ₹1,901.7 crore in the previous quarter. The Gross NPA ratio was 2.31%, up 33 basis points (bps) from 1.98% in Q2 FY25.

The net NPA was reported at ₹905.6 crore in the reporting quarter, up from ₹706.7 crore in the September quarter. The net NPA ratio was 0.91% vs 0.75% in the quarter ended September 2024.

AU Small Finance Bank share price

Following the earnings announcement, shares of AU Small Finance Bank settled 0.96% higher at ₹588 apiece on the NSE.

Sanjay Agarwal, Founder, MD and CEO of AU Small Finance Bank, said, "The economy saw some bounce back during festive season, however the momentum slowed down towards the latter half of the quarter. Overall economic activity whilst better than H1, remains below market expectations. Tight liquidity and persistent inflation continue to pose challenge to deposit growth and interest rates."

The small finance bank paid ₹2,090.76 crore as interest, up 7.97% QoQ and 48.1% YoY.

AU SFB's operating profit before provisions and contingencies rose 6.46% QoQ to ₹1,204.90 crore. YoY, it jumped 85.47%.