Chennai, 29 Oct 2026: AU Small Finance Bank (AU SFB), India’s largest small finance bank and the first in over a decade to receive in-principle approval to transition into a Universal Bank, today announced its financial results for the quarter ended September 30, 2026, reporting strong growth across all key parameters.
Key financial high lights for Q2’FY27
o Net Interest Margin increased by 33 bps YoY to 5.8% in Q2’FY27 from 5.5% in Q2’FY26
o Cost of Funds (CoF) declined by 43 bps YoY to 6.41% in Q2’FY27 from 6.83% in Q2’FY26
o Net Interest Income (NII) grew by 32% YoY to ₹2,820 cr compared to ₹2,144 cr in Q2’FY26
o Core other income grew by 16% YoY to ₹736 cr compared to ₹634 cr in Q2’FY26 driven by fees from credit card and transaction banking
o Credit cost (Including guarantee premium) declined by 45 bps YoY from 1.2% to 0.8%
o PAT grew 53% YoY to ₹858 cr, with annualised RoA of 1.7% and RoE of 16.1%
o Deposit book stands at ₹1,70,460 cr registering YoY growth of 28.6% which was nearly 1.6x of the system growth
o CASA deposits stand at ₹50,289 cr, up 29% YoY and 11% QoQ; CASA ratio at 29.5%
o Gross loan port folio (GLP) stands at ₹1,53,769 cr, register ing a YoY growth of 25.1% which was nearly 1.3x of the system growth; Gross advances at ₹1,50,291 cr, up 27.9% YoY
o GNPA ratio improved by 42 bps YoY to 1.99%; NNPA ratio improved by 7 bps to 0.81%; PCR at 83% including technical write-off
o Strengthened leadership team further with the appointment of Mr. Anil Agarwal as Senior Executive Group Head – Commercial & Institutional Banking.
He will lead Commercial and Institutional Banking, encompassing lending, transaction banking and funding solutions across key institutional and commercial segments
o Mr. Amol Padhye formally assumed role of Chief Risk Officer, and will help to further strengthen enterprise-wide risk governance, regulatory readiness and risk management frameworks
o During the quarter, bank added net 183 touchpoints includ ing 45 new liability branches and 100+ asset centres across the country
o Digital Adoption: 46+ lac registered users on AU 0101 with 19.4 lac MAUs (Monthly Active Users)
o AI-Native Bank: Gold Loan Agentic LOS live across 40 branches with more than 2.5 k loans disbursed; application to be rolled out to 100 branches in a phased manner
o Bank now has total 128 lac+ custo mers; serves them through a total 3,103 touchpoints across 21 states and 4 UTs with total strength of ~61K employees
o ICRA Ratings upgraded Bank’s longterm credit rating outlook to Positive from Stable, while re-affirming our longterm rating at AA.