AU Small Finance Bank shares rise 5% on strong Q4 business update; stock down 25% from 52-week high

Shares of AU Small Finance Bank surged nearly 5 percent in intra-day trading on April 3, following the lender’s strong business update for the quarter ended March 2025 (Q4FY25). Investors reacted positively to the bank’s steady growth in deposits and advances, which underscored its resilience amid evolving macroeconomic conditions.

AU Small Finance Bank posted a solid operational performance for Q4FY25, with total deposits rising to ₹1,24,270 crore, reflecting a 10.7 percent sequential increase from ₹1,12,260 crore in December 2024. On an annual basis, deposits saw a significant jump of 27.2 percent from ₹97,704 crore as of April 1, 2024, following its merger with Fincare SFB. CASA deposits also saw an uptick, growing 5.4 percent QoQ to ₹36,250 crore, though the CASA ratio declined slightly to 29.2 percent from 30.6 percent in the prior quarter.

On the lending side, gross advances climbed 7.7 percent QoQ to ₹1,08,780 crore from ₹1,00,989 crore in the previous quarter, reflecting strong credit demand. Including securitised and assigned portfolios along with IBPC, the bank’s gross loan portfolio expanded 6.2 percent QoQ to ₹1,15,710 crore. On a year-on-year basis, the gross loan book recorded a healthy growth of 19.9 percent from ₹96,490 crore.

In a strategic move to strengthen its capital base, AU Small Finance Bank recently received board approval to issue unsecured, rated, listed, redeemable, subordinated, non-convertible Lower Tier II Bonds worth up to ₹1,500 crore. These bonds, which qualify as Tier II capital, will be issued via private placement through the Electronic Bidding Platform (EBP) and will be listed on the Wholesale Debt Market segment of BSE Limited.

Stock Performance and Market Reaction

The stock climbed as much as 4.65 percent to an intra-day high of ₹563.85. Despite the rally, AU Small Finance Bank remains over 25 percent below its 52-week high of ₹755, recorded in September 2024. The stock had hit a 52-week low of ₹479 in the previous month.

Over the past year, AU SFB shares have declined 9 percent. In March, the banking stock fell 5.5 percent, following an almost 6 percent decline in February. However, January saw a 7.5 percent gain.

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