AU Small Finance Bank announced its financial results for the second quarter and first half of fiscal year 2027. The bank reported a 53% year-over-year increase in profit after tax (PAT) for Q2’FY27, reaching ₹858 crore. This performance was driven by a 29% growth in deposits and a 25% expansion in the gross loan portfolio.
AU Small Finance Bank Reports Strong Q2’FY27 Performance
AU Small Finance Bank has unveiled robust financial results for the quarter and half-year ended September 30, 2026. The bank demonstrated a strong all-round performance, with profit up 53%, deposits growing by 29%, and loans expanding by 25%.
Q2’FY27 Financial Highlights
For the second quarter of FY27 (Q2’FY27), the bank’s core pre-provisioning operating profit (PPoP) grew by an impressive 31% year-over-year to ₹1,480 crore. Profit After Tax (PAT) saw a significant increase of 53% year-over-year, reaching ₹858 crore. The Return on Assets (RoA) stood at 1.7%, and Return on Equity (RoE) was 16.1%.
Key financial metrics for Q2’FY27 include a Net Interest Margin (NIM) improvement of 33 basis points year-over-year to 5.8%. Net Interest Income (NII) grew by 32% year-over-year to ₹2,820 crore. Core other income also rose by 16% year-over-year to ₹736 crore. The credit cost declined by 45 basis points year-over-year to 0.8%.
Deposit and Loan Portfolio Growth
The deposit book recorded substantial growth, standing at ₹1,70,460 crore, a year-over-year increase of 28.6%. CASA deposits grew by 29% year-over-year to ₹50,289 crore, with the CASA ratio at 29.5%. The gross loan portfolio (GLP) expanded by 25.1% year-over-year to ₹1,53,769 crore.
H1’FY27 Performance
For the first half of fiscal year 2027 (H1’FY27), core PPoP grew by 36% year-over-year to ₹2,906 crore. PAT increased by 45% year-over-year to ₹1,654 crore. The RoA for H1’FY27 was 1.7%, and RoE was 15.8%.
Asset Quality and Strategic Updates
The Gross Non-Performing Asset (GNPA) ratio improved by 42 basis points year-over-year to 1.99%. The bank also welcomed leadership appointments, including Mr. Anil Agarwal as Senior Executive Group Head – Commercial & Institutional Banking and Mr. Amol Padhye as Chief Risk Officer. Digital adoption continues to grow, with over 46 lakh registered users on the AU 0101 platform.
Source: BSE
