AU Small Finance Bank Deputy CEO Rajeev Yadav Resigns; Q2 Profit Dips 2%

AU Small Finance Bank has revealed that its Deputy CEO, Rajeev Yadav, has tendered his resignation, which will be effective from the close of business hours on October 31, 2025. Yadav stated his intention to pursue other opportunities, expressing gratitude for his time at the bank.

In parallel, the bank reported its financial results for the second quarter of the fiscal year ending September 30, 2025. The net profit saw a slight decline of 2% compared to the same period last year, amounting to Rs 561 crore, down from Rs 571 crore in Q2 FY25. However, the net total income increased by 9% to Rs 2,857 crore. Operating expenses rose by 11% year-on-year to Rs 1,647 crore, while provisioning increased significantly by 29% to Rs 481 crore. Despite these figures, the bank's total deposits grew by 21% year-on-year, reaching over Rs 1.32 lakh crore.

Impact: This news could impact investor sentiment towards AU Small Finance Bank. The resignation of a key executive like the Deputy CEO, even with a distant effective date, raises questions about leadership stability and future strategy. The dip in net profit, coupled with increased operating expenses and provisioning, signals potential challenges in profitability. However, the strong deposit growth indicates continued customer trust and business expansion. Investors will closely watch the bank's performance and strategic adjustments in the coming quarters. Impact rating: 6/10

Difficult Terms Explained: Net Profit: The profit remaining after all expenses, taxes, and interest have been deducted from the total revenue. Net Total Income: The total revenue generated by the bank from all sources, after deducting any related expenses. Operating Expenses: The costs incurred in the normal course of running the bank's business, such as salaries, rent, and administrative costs. Provisioning: Funds set aside by the bank to cover potential losses from loans that may not be repaid.