Read the quarter in context.
A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
Pending
verification pending
Revenue YoY
—
reported change
EBITDA
Pending
latest reported figure
Source
manual review required
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
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 improved cost efficiency (cost-to-income ratio fell to 57% from 61% QoQ). However, asset quality challenges persist: credit cost rose to 1.28% in H1, above expectations, due to elevated slippages in MFI (7% of book) and credit cards. Management expects H2 credit cost to remain near H1 levels, with secured assets likely improving but MFI uncertainty continuing. The bank aims to defend ROA of 1.6% for FY25. Key risks include further deterioration in MFI portfolio and elevated credit costs in unsecured lending.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects H2 credit cost to be broadly similar to H1, with a possible variance of 10-15 bps depending on economic conditions.
- Despite seasonally higher OpEx in H2, management expects cost-to-income to be ~60% for FY25, down from 63-64% last year.
- Revised down from initial 7.2-7.25% due to better deposit franchise and stable rates.
- Management aims to defend ROA at 1.6% despite elevated credit costs, supported by other income and cost control.
Risks flagged
- 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.
- Credit cost in unsecured book was ~8.5% in H1 vs guided 6.5%; management expects elevated levels in H2 as well.
- Slippages in secured retail (67% of total) were higher than expected due to weather and election impact; recovery depends on economic pickup.
- Draft LCR circular could require higher liquidity; management has not yet assessed impact but noted ratio is comfortable for now.
Key quotes
- Our underperformance in asset quality was offset by sustained growth in other income and improved cost income ratio.
- We need to see one more quarter to really assess the real impact of this whole free lapses, you know, and so that is one thing.
- The roadmap to maybe 55% in the next couple of years or maybe three to four years is now there.
Research modules