Prolonged MFI stress
MFI credit cost of 5.4% annualized YTD and elevated SMA pool of 4.4% may persist for 2-3 quarters, impacting overall profitability.
high · management_commentaryAU Small Finance Bank Limited — Q3 FY25
AU Small Finance Bank reported Q3 FY25 PAT of INR 528 crore, down 7% QoQ due to elevated credit costs in MFI and credit cards.
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 portfolio deterioration
Credit card book declined 9% QoQ with credit cost of 9.2% YTD; corrective actions may take 1-2 quarters to show results.
high · management_commentaryLiquidity and cost of funds pressure
Tight banking system liquidity and persistent inflation may keep cost of funds elevated, impacting NIMs.
medium · management_commentaryEconomic slowdown impact on secured assets
Analyst raised concern about sequential asset quality changes in secured book; management confident but GDP slowdown could affect informal segments.
medium · analyst_question