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.
AUBANK / Q2-FY25 / risks
Keep the risk register visible.
AU Small Finance Bank · Material risks, their source context, and severity in the latest available quarter.
Research layer active
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.
Risk intelligence
Material risks this quarter
high
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.
Secured 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.
LCR 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.