AU Small Finance Bank has successfully maintained its credit ratings, with CRISIL Ratings reaffirming AA+/Stable for fixed deposits and A1+ for certificate of deposits. Long-term debt instruments, including Tier-II bonds, have been reaffirmed at AA/Stable. The bank continues to demonstrate steady growth with a deposit base of ₹138,415 crore as of December 31, 2025, supported by comfortable capital adequacy ratios and a stable asset quality profile, reflecting resilience in its banking operations.
Strong Financial Foundation and Ratings
AU Small Finance Bank maintains a robust credit profile, as evidenced by the recent reaffirmation of its ratings by CRISIL. The bank’s commitment to capital strength is highlighted by its net worth of ₹19,085 crore as of December 31, 2025. With a reported capital adequacy ratio of 19%, the bank remains well-positioned to support its ongoing business expansion and strategic goals.
Business Performance and Asset Quality
The bank has exhibited strong operational performance, reporting a profit after tax of ₹1,809 crore for the first nine months of fiscal 2026, achieving a return on assets of 1.5%. Advances have grown to ₹129,898 crore by the end of December 2025, reflecting a year-on-year growth of approximately 20%. Asset quality remains stable, with Gross NPA controlled at 2.3%, demonstrating the bank’s effective risk management and portfolio monitoring capabilities.
Strategic Outlook and Liability Franchise
The bank is currently in the midst of a strategic transition following the in-principle approval received from the Reserve Bank of India in August 2025 to evolve into a universal bank. On the liability side, the bank continues to focus on strengthening its retail deposit franchise. While managing competitive pressures, the bank has maintained a substantial deposit base of ₹138,415 crore, with 56% of its bulk term deposits being non-callable, providing a degree of stability against liquidity fluctuations.
Commitment to ESG and Sustainability
AU Small Finance Bank is actively integrating sustainability into its business model through the ‘Planet First – AU Green Deposit’ program. Since its inception in October 2023, the initiative has mobilized over ₹1,170 crore for eco-friendly projects. Additionally, the bank reports a strong emphasis on digital security, maintaining ISO 27001 certification and reporting zero data breaches over the past three fiscal years, underscoring its focus on customer trust and operational integrity.
Source: BSE
