AU Small Finance Bank announced its Q2’FY26 results with a profit of ₹561 Cr. Deposits grew by 21% YoY and loans (excluding unsecured) by 22%. PPoP increased by 21% to ₹2,522 Cr in H1’FY26. The bank also received ‘in-principle’ approval from RBI to transition to Universal Bank in August 2025. NIM increased slightly to 5.5%.
Financial Performance Highlights
AU Small Finance Bank (AU SFB) has released its financial results for Q2’FY26, showcasing steady growth across key metrics:
- Profit After Tax (PAT): ₹561 Cr
- Deposits Growth: 21% YoY
- Loans (excl. unsecured) Growth: 22% YoY
- PPoP Growth (H1’FY26): 21% YoY to ₹2,522 Cr
- Return on Assets (RoA): 1.4%
- Return on Equity (RoE): 12.9%
Key Financial Ratios
Several financial ratios reflect the bank’s operational efficiency and asset quality:
- Net Interest Margin (NIM): Increased to 5.5% in Q2’FY26
- Cost of Funds (CoF): Declined to 6.83%
- Gross NPA (GNPA) Ratio: 2.41%
- Net NPA (NNPA) Ratio: 0.88%
Strategic Developments
AU Small Finance Bank has made notable strategic progress:
- Received ‘in-principle’ approval from RBI for transition to Universal Bank in August 2025.
- Expanded its reach by adding 121 touchpoints, including 46 branches.
- The bank now serves over 120 lac+ customers through 2,626 touchpoints across 21 states and 4 UTs.
Deposit and Loan Growth
The bank witnessed significant expansion in its deposit and loan portfolios:
- Deposit Book: Stands at ₹1,32,509 Cr, a YoY growth of approximately 21%.
- Gross Loan Portfolio (excl. unsecured): Grew by 22% YoY.
Executive Commentary
Mr. Sanjay Agarwal, MD & CEO of AU Small Finance Bank, noted that the bank is well-positioned to leverage opportunities with strong fundamentals and disciplined execution and that the RBI’s approval reaffirms their purpose and governance standards.
Source: BSE
