AU Small Finance Bank Share Price Rise 5% After Strong Q4 Update

AU Small Finance Bank share price jumped nearly 5% on April 3 after the company reported strong financial performance for the March 2025 quarter (Q4FY25). Investors reacted positively to steady growth in deposits and loans, highlighting the bank’s resilience despite economic challenges.

Deposits and CASA Growth

AU Small Finance Bank reported a 10.7% increase in total deposits, which rose to ₹1,24,270 crore from ₹1,12,260 crore in December 2024. Compared to last year, deposits grew 27.2%, driven by the bank’s merger with Fincare Small Finance Bank.

The bank’s CASA deposits (Current Account and Savings Account) also grew 5.4% quarter-on-quarter (QoQ) to ₹36,250 crore. However, the CASA ratio slightly declined from 30.6% to 29.2%, indicating a larger share of term deposits.

Loan Portfolio Expansion

On the lending side, gross advances increased 7.7% QoQ to ₹1,08,780 crore. Including securitised and assigned loans, the total gross loan portfolio expanded 6.2% QoQ to ₹1,15,710 crore. Over the past year, the loan book recorded a 19.9% growth from ₹96,490 crore.

₹1,500 Crore Bond Issue for Capital Strengthening

To boost its capital reserves, AU Small Finance Bank’s board approved the issuance of Lower Tier II Bonds worth ₹1,500 crore. These non-convertible bonds will be privately placed and listed on the BSE’s Wholesale Debt Market.

Stock Performance Overview

• Intraday movement: The stock climbed 4.65% to a high of ₹563.85.

• 52-week range: AU SFB is still 25% below its 52-week high of ₹755 (September 2024) but above its 52-week low of ₹479 (March 2025).

• Yearly performance: The stock has dropped 9% in the past year.

• Monthly trends:
  • Fell 5.5% in March

  • Declined 6% in February

  • Gained 7.5% in January

Conclusion

AU Small Finance Bank’s strong Q4 performance reflects steady growth in deposits and loans, boosting investor confidence. Despite recent stock declines, its expansion strategy and capital-raising efforts may support long-term growth.

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