Elevated credit cost on credit card book
Credit card credit cost is currently ~6-6.5% annualized, higher than industry steady-state, and may not normalize until the book reaches larger scale.
high · analyst_question
AU Small Finance Bank Limited — Q3 FY24
AU Small Finance Bank reported Q3 FY24 results in line with expectations, with balance sheet crossing INR 100,000 crore and deposits growing 31% YoY to over INR 80,000 crore.
neutral
medium
✓ Verified against BSE filing
Risk Intelligence
Material risks this quarter
Concise cards keep the risk register scannable while preserving evidence-level context in the underlying quarter data.
Risks
Margin pressure from rising cost of funds
Cost of funds increased 78 bps in 9M FY24 and 20 bps QoQ; NIM contracted 6 bps QoQ to 5.5%. Further hikes could compress margins.
medium · management_commentaryPost-merger integration and MFI credit risk
Fincare merger adds MFI book with ~3% expected credit cost; integration and asset quality management remain key risks.
medium · management_commentaryHigh NTB credit card issuance may lead to adverse selection
75% of credit cards issued to new-to-bank customers with average limit of INR 1.74 lakh, which could result in higher delinquencies as the book seasons.
high · analyst_question