AU Small Finance Bank
Asset quality stable: The bank has maintained stable asset quality in Q2FY2026.
The fresh slippages of loans stood at Rs 908 crore in Q2FY2026 compared with 1027 crore in previous quarter and Rs 736 crore in the corresponding quarter last year. The recoveries, upgradations and write offs of NPAs stood at Rs 824 crore in Q2FY2026. The standard restructured loan book of the bank stood at Rs 220 crore end September 2025. Provision coverage ratio was steady at 84% at end September 2025 compared to 83% a quarter ago and 82% a year ago. The capital adequacy ratio of the bank stood at 18.8% with Tier I ratio at 16.9% at end September 2025.| Asset Quality Indicators: AU Small Finance Bank | ||||||||
| ? | Sep-25 | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Variation | ||
| QoQ | YTD | YoY | ||||||
| Gross NPA (Rs Crore) | 2835.34 | 2751.32 | 2477.03 | 2335.51 | 1901.69 | 3 | 14 | 49 |
| Net NPA (Rs Crore) | 1015.66 | 971.34 | 791.34 | 905.60 | 706.70 | 5 | 28 | 44 |
| % Gross NPA | 2.41 | 2.47 | 2.28 | 2.31 | 1.98 | -6 | 13 | 43 |
| % Net NPA | 0.88 | 0.88 | 0.74 | 0.91 | 0.75 | 0 | 14 | 13 |
| % PCR | 84.00 | 83.00 | 84.00 | 80.00 | 82.00 | 100 | 0 | 200 |
| % CRAR - Basel III | 18.78 | 19.42 | 20.06 | 18.01 | 18.51 | -64 | -128 | 27 |
| % CRAR - Tier I - Basel III | 16.90 | 17.50 | 18.10 | 16.90 | 17.40 | -60 | -120 | -50 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
Business Highlights:
Healthy business growth: The business of the bank has increased 24% YoY to Rs 255386 crore end September 2025, driven by 28% surge in advances to Rs 122877 crore. Deposits rose 21% to Rs 132509 crore at end September 2025.
CASA deposits ratio rises qoq, declines yoy: The CASA deposits of the bank increased 10% YoY to Rs 38963 crore at end September 2025. The current account deposits increased 26% to Rs 7562 crore, while saving account deposits rose 6% to Rs 31401 crore end September 2025. The CASA ratio declined to 29.4% at end September 2025 compared to 32.4% at end September 2024, while rose from 29.2% a quarter ago. The term deposits have increased 26% to Rs 93546 crore end September 2025.
Strong loan growth: Advances growth was driven by retail loans rising 17% YoY to Rs 85642 crore at end September 2025, while credit to MSME increased 22% to Rs 25446 crore at end September 2025. The corporate credit has jumped 81% to Rs 5331 crore end September 2025.
Investment book of the bank increased 20% YoY to Rs 38382 crore at end September 2025.
Margins decline yoy, improve qoq: The bank has shown 24 bps YoY decline in cost of deposits to 6.80%, while yield on advances dipped 50 bps YoY to 13.90% in Q2FY2026. Thus, the NIM has declined 60 bps YoY, while rose 10 bps qoq to 5.50% in Q2FY2026.
Branch expansion: The bank has added 121 branches and 29 ATMs in Q2FY2026, taking overall tally to 2626 branches and 707 ATM`s end September 2025.
Book value of the bank stood at Rs 243.2 per share at end September 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 229.3 per share at end September 2025.
Quarterly Performance
NII rises on strong loan growth: Bank has recorded 15% increase in the interest earned at Rs 4511.28 crore, while interest expenses increased 22% to Rs 2366.87 crore in Q2FY2026. NII improved 9% to Rs 2144.41 crore in the quarter ended September 2025.
Healthy growth in the core fee income: Bank has posted strong 11% growth in core fee income to Rs 634 crore, while the treasury income improved 16% to Rs 79 crore, leading to 12% rise in the overall non-interest income to Rs 712.58 crore in the quarter ended September 2025.
Expenses ratio rises: The operating expenses of the bank increased 11% to Rs 1647.27 crore, as other expenses moved up 5% to Rs 728.56 crore, while employee expenses increased 17% to Rs 918.71 crore in Q2FY2026. Cost to income ratio rose to 57.7% in Q2FY2026 compared with 56.7% in Q2FY2025. Operating Profit increased 7% to Rs 1209.72 crore.
Provisions and contingencies jump: The bank has shown 29% surge in provisions to Rs 480.83 crore. The loan loss provisions increased 30% to Rs 477 crore, while standard asset provisions fell 20% to Rs 4 crore.
Effective tax rate declined to 23.1% in Q2FY2026 from 24.7% in Q2FY2025. Net Profit fell by 2% YoY to Rs 560.87 crore during quarter ended September 2025.
Financial Performance H1FY2026:
Bank has posted 6% increase in net profit to Rs 1141.73 crore in the half year ended September 2025 (H1FY2026). The net interest income increased 8% to Rs 4189.09 crore, while non-interest income moved up 33% to Rs 1523.19 crore, pushing up net total income by 13% to Rs 5712.28 crore in H1FY2026. The operating expenses increased 8% to Rs 3190.34 crore, while provision and contingencies galloped 55% to Rs 1014.14 crore, allowing profit before tax to increase 6% to Rs 1507.80 crore in H1FY2026. The cost-to-income ratio improved to 55.9% in H1FY2026 compared to 58.7% in H1FY2025. An effective tax rate declined to 24.3% in H1FY2026 compared to 24.8% in H1FY2025. The net profit has increased 6% to Rs 1141.73 crore in H1FY2026.?
| AU Small Finance Bank: Results | |||||||||
| Particulars | 2509 (3) | 2409 (3) | Var % | 2509 (6) | 2409 (6) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 4511.28 | 3910.61 | 15 | 8889.73 | 7679.65 | 16 | 16063.73 | 10554.71 | 52 |
| Interest Expended | 2366.87 | 1936.25 | 22 | 4700.64 | 3784.71 | 24 | 8052.15 | 5397.63 | 49 |
| Net Interest Income | 2144.41 | 1974.36 | 9 | 4189.09 | 3894.94 | 8 | 8011.58 | 5157.08 | 55 |
| Other Income | 712.58 | 637.96 | 12 | 1523.19 | 1147.24 | 33 | 2526.31 | 1697.14 | 49 |
| Net Total Income | 2856.99 | 2612.32 | 9 | 5712.28 | 5042.18 | 13 | 10537.89 | 6854.22 | 54 |
| Operating Expenses | 1647.27 | 1480.56 | 11 | 3190.34 | 2958.68 | 8 | 5880.41 | 4388.00 | 34 |
| Operating Profits | 1209.72 | 1131.76 | 7 | 2521.94 | 2083.50 | 21 | 4657.48 | 2466.22 | 89 |
| Provisions & Contingencies | 480.83 | 372.99 | 29 | 1014.14 | 655.84 | 55 | 1792.62 | 389.99 | 360 |
| Profit Before Tax | 728.89 | 758.77 | -4 | 1507.80 | 1427.66 | 6 | 2864.86 | 2076.23 | 38 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | -76.80 | - |
| PBT after EO | 728.89 | 758.77 | -4 | 1507.80 | 1427.66 | 6 | 2864.86 | 1999.43 | 43 |
| Provision for tax | 168.02 | 187.57 | -10 | 366.07 | 353.89 | 3 | 682.13 | 464.71 | 47 |
| PAT | 560.87 | 571.20 | -2 | 1141.73 | 1073.77 | 6 | 2182.73 | 1534.72 | 42 |
| EPS*(Rs) | 30.1 | 30.7 | ? | 30.6 | 28.9 | ? | 29.3 | 23.8 | ? |
| Equity | 746.1 | 743.5 | ? | 746.1 | 743.5 | ? | 744.5 | 669.2 | ? |
| Adj BV (Rs) | 229.3 | 204.6 | ? | 229.3 | 204.6 | ? | 217.9 | 180.2 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 10, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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