At a Glance
AU Small Finance Bank scaled from a Jaipur-based NBFC to a ₹58,000 Cr market cap digital-savvy bank serving over 1 crore Indians. With a focus on wheels, microfinance, and mortgages, it’s delivering 25% CAGR profit growth — but now faces rising NPAs, slowing margins, and a dramatic drop in promoter holding. Can the AU0101 app keep compounding?
1️⃣ Origin Story: From Wheels to Wallets
Founded in 1996 as a vehicle financier, AU got its Small Finance Bank license in 2015 and listed in 2017. Since then, it’s been on a mission to:
- Serve unbanked Bharat
- Build a mobile-first digital bank
- Collect deposits like a grown-up
- Still lend to truckers (but now with an app)
2️⃣ Financial Recap: The Small Bank With Big Numbers
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 4,950 | 5,922 | 8,205 | 10,555 | 16,064 |
| Net Profit (₹ Cr) | 1,171 | 1,130 | 1,428 | 1,535 | 2,106 |
| EPS (₹) | 18.75 | 17.94 | 21.42 | 22.93 | 28.29 |
| Deposits (₹ Cr) | 35,979 | 52,585 | 69,365 | 87,182 | 1,24,269 |
| Gross Loan Book (₹ Cr) | ~39,000 | ~52,000 | ~71,000 | ~89,000 | 1,08,921 |
| Gross NPA (%) | 1.8% | 1.7% | 1.6% | 1.9% | 2.3% |
| ROE (%) | 22% | 16% | 15% | 13% | 14% |
📉 Takeaway: Revenue tripled. Net profit nearly doubled. But NPA and ROE are… getting moody.
3️⃣ What They Actually Do 🧾
📦 Product Mix (Q3 FY25 Loan Book)
- Mortgage-Backed Loans: 33%
- Wheels (Vehicle Finance): 32%
- Commercial Banking: 21%
- Microfinance: 7%
- Others: 7%
💰 Deposit Mix
- Term Deposits: 65%
- CASA: 31%
- Certificates of Deposit: 4%
AU is basically lending to aspirational India — and funding it with urban India’s deposits. Nice arbitrage model, until the NPAs start rising.
4️⃣ Growth Hits, Glitches & Gimmicks 📈
✅ What’s Working
- 💸 Deposit Growth: From
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