Revenue and Income Growth
AU Small Finance’s interest earned surged from ₹2,949 crore in March 2019 to ₹16,064 crore by March 2025, reflecting a compounded expansion driven primarily by advances and investments. Interest on advances, the largest component, rose markedly from ₹2,374 crore in 2019 to ₹13,368 crore in 2025, underscoring the bank’s growing loan book. Income on investments also increased steadily, reaching over ₹2,238 crore in the latest fiscal year. Total income, combining interest and other income streams, climbed from ₹3,411 crore in 2019 to ₹18,590 crore in 2025, indicating a strong top-line momentum.
Profitability and Margins
Net interest income, a critical profitability indicator, expanded from ₹1,343 crore in 2019 to ₹8,012 crore in 2025. Despite rising expenditure, operating profit before provisions more than doubled from ₹722 crore in 2019 to ₹4,581 crore in 2025. Provisions and contingencies increased in line with the bank’s growth, reaching ₹1,793 crore in 2025, yet profit before tax rose substantially to ₹2,788 crore. The profit after tax followed suit, growing from ₹382 crore in 2019 to ₹2,106 crore in 2025. Earnings per share (EPS) reflected this upward trend, rising from ₹6.53 to ₹28.29 over the same period. While operating profit margins have slightly moderated from a peak of 60.31% in 2020 to 51.76% in 2025, the bank maintains healthy profitability levels. The PAT margin, however, has seen a gradual decline from 23.65% in 2021 to 13.11% in 2025, reflecting increased provisioning and operational costs.
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Balance Sheet Expansion
The bank’s total assets have grown impressively from ₹42,143 crore in 2020 to ₹1,57,846 crore in 2025, reflecting aggressive scaling of operations. Advances, a key asset category, increased from ₹26,992 crore in 2020 to ₹1,07,092 crore in 2025, supporting the rise in interest income. Deposits also expanded significantly, from ₹26,164 crore in 2020 to ₹1,24,269 crore in 2025, indicating strong customer acquisition and deposit mobilisation. Shareholders’ funds rose from ₹4,377 crore in 2020 to ₹17,166 crore in 2025, bolstered by reserves that more than quadrupled over the period. The bank’s branch network expanded from 528 branches in 2020 to 2,456 in 2025, enhancing its reach and customer base. The CASA ratio, a measure of low-cost deposits, fluctuated but remained healthy at 29.2% in 2025, supporting margin stability.
Asset Quality and Provisioning
AU Small Finance has maintained a focus on asset quality, with gross non-performing assets (NPAs) rising moderately from ₹470 crore in 2019 to ₹2,477 crore in 2025. However, the percentage of gross NPAs improved from 4.25% in 2021 to 2.28% in 2025, reflecting better credit risk management. Net NPAs as a percentage of advances stood at a low 0.74% in 2025, down from 2.18% in 2021. Provision coverage ratio improved significantly to 84% in 2025, up from 37.4% in 2019, indicating prudent provisioning policies to safeguard against credit losses.
Cash Flow and Liquidity
Cash and cash equivalents increased from ₹3,369 crore in 2021 to ₹9,466 crore in 2025, supported by positive net cash flow from operations. The bank’s investments portfolio also expanded from ₹10,815 crore in 2021 to ₹37,848 crore in 2025, providing liquidity buffers. Borrowings showed some volatility but declined overall from ₹10,335 crore in 2020 to ₹11,660 crore in 2025, reflecting a balanced funding mix alongside deposits.
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Summary of Historical Performance
AU Small Finance has exhibited strong growth across key financial parameters over the past six years. The bank’s income and profit metrics have expanded substantially, supported by a growing advances book and deposit base. Despite some moderation in profitability margins, the bank maintains solid operating efficiency and prudent asset quality management. Its expanding branch network and increasing CASA deposits underpin a sustainable growth model. The improving provision coverage ratio and controlled NPA levels reflect a cautious approach to credit risk. Overall, AU Small Finance’s historical performance indicates a well-managed institution with consistent growth and improving financial health, positioning it favourably in the competitive small finance banking sector.
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