MFI credit cost could exceed 3% annualized
MFI portfolio (7% of book) is experiencing industry-wide stress; credit cost in H1 was ~3.5% and may rise further if economic recovery falters.
high · management_commentaryAU Small Finance Bank Limited — Q2 FY25
AU Small Finance Bank reported a strong Q2 FY25 with PAT of ₹571 crore, up 14% QoQ, driven by robust deposit growth (total deposits crossed ₹1.1 lakh crore, up 12.7% QoQ) and im...
neutral
medium
Financial stats pending filing verification
Risk Intelligence
Material risks this quarter
Concise cards keep the risk register scannable while preserving evidence-level context in the underlying quarter data.
Risks
Credit card and unsecured lending credit costs remain elevated
Credit cost in unsecured book was ~8.5% in H1 vs guided 6.5%; management expects elevated levels in H2 as well.
medium · analyst_questionSecured asset slippages may not fully reverse in H2
Slippages in secured retail (67% of total) were higher than expected due to weather and election impact; recovery depends on economic pickup.
medium · data_observationLCR ratio at 112% may face regulatory pressure
Draft LCR circular could require higher liquidity; management has not yet assessed impact but noted ratio is comfortable for now.
low · analyst_question