Unity Small Finance Bank Limited, promoted by Centrum Financial Services Ltd., has demonstrated significant financial growth in the fiscal year ending March 31, 2025. The bank reported a net profit of ₹264 crore in Q4 FY25, an 83% increase compared to the same quarter in the previous year. For the full fiscal year, the net profit stood at ₹482 crore, marking a 10% year-on-year growth.

Significant Growth in Deposits and Advances

The bank's total deposits surged by 84% year-on-year, reaching ₹11,952 crore. This growth was driven by enhanced outreach to retail customers through digital platforms and branch networks. On the lending side, net advances grew by 38%, totaling ₹10,985 crore. The bank maintained a cautious approach, focusing on secured loan categories and prudently managing unsecured loans.

Strong Operating Metrics and Capital Adequacy

Unity Bank's pre-provisioning operating profit (PPoP) for Q4 FY25 was ₹347 crore, a 109% increase from the previous year. The bank's net interest income (NII) rose by 85% to ₹709 crore in Q4 FY25. The capital adequacy ratio (CRAR) stood at 29%, and the liquidity coverage ratio (LCR) was at 208%, indicating a strong and well-capitalized balance sheet.

Strategic Initiatives and Product Expansion

In FY25, Unity Bank launched several new consumer-focused products, including personal loans and a revamped mobile application. The bank is also in the pilot phase of launching two credit card variants, aiming to expand its digital offerings and reach a wider customer base.

Focus on Secured Lending and Risk Mitigation

Moving forward, Unity Bank plans to increase its focus on secured loan products, such as gold loans and micro-LAP, to mitigate risks associated with unsecured lending. The bank aims to maintain the quality of its advances while continuing to grow its customer base through strategic marketing initiatives.

Conclusion

Unity Small Finance Bank's performance in FY25 reflects its commitment to sustainable growth, prudent risk management, and customer-centric innovation. With strong financial metrics and strategic initiatives in place, the bank is well-positioned for continued success in the coming years.

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