The largest small finance bank in India, AU Small Finance Bank, said in an exchange filing on Friday that its net profit for the third quarter of the fiscal year 2024–2025 decreased 7.48 per cent on a quarterly basis to Rs 528.44 crore.

The post-tax profit in Q2 of FY25 was Rs 571.21 crore. Additionally, the profit grew by 40.8 per cent year over year (YoY).

Net interest income (NII) Q3 FY25

After rising 2.4 per cent to Rs 2,022.5 crore in Q3 FY25, net interest income (NII) was Rs 1,974.4 crore in the July-September quarter of the current fiscal year.

AU Small Finance Bank's total revenue in the reviewed quarter was Rs 4,731.88 crore, up 4 per cent from Rs 4,548.57 crore in the second quarter of FY25.

Gross and net NPA (Non performing assets) Q3 FY25

In Q3 of FY25, gross non-performing assets (Gross NPA) were valued at Rs 2,335.5 crore, up from Rs 1,901.7 crore the previous quarter. In Q2 FY25, the Gross Non-Performing Asset (NPA) ratio was 1.98 per cent; it increased by 33 basis points (bps) to 2.31 per cent.

The net non-performing asset (NPA) increased from Rs 706.7 crore in the September quarter to Rs 905.6 crore in the reporting quarter. In the quarter that ended in September 2024, the net NPA ratio was 0.91 per cent as opposed to 0.75 per cent.

Shares performance

Shares of AU Small Finance Bank ended the day on the NSE 0.96 per cent higher at Rs 588 each after the earnings announcement.

'The economy saw some bounce back during the festive season, but the momentum slowed down towards the latter half of the quarter,' stated Sanjay Agarwal, AU Small Finance Bank's founder, MD, and CEO. Despite being better than H1, overall economic activity is still below market expectations. Interest rates and deposit growth are still hampered by tight liquidity and ongoing inflation.