AU Small Finance Bank reported a strong performance for Q3 FY26, marked by deposit growth of 23.3% YoY, loan growth of 19.3% YoY, and a 26% YoY increase in PAT to ₹668 Cr. The bank continues to invest in technology and expand its reach, focusing on sustainable and inclusive growth. The bank’s CASA ratio remains robust, and asset quality is stable.
Financial Performance Highlights
AU Small Finance Bank delivered strong results in Q3 FY26:
- Deposit growth: Approximately 23.3% YoY to ₹1.38 Lacs Cr.
- Loan growth: Approximately 19.3% YoY to ₹1.30 Lacs Cr.
- PAT growth: 26% YoY to ₹668 Cr.
- NIM: Expanded by 25bps QoQ to 5.7%.
Key Business Updates
- The bank continues to focus on expanding its reach and enhancing its digital capabilities.
- The bank inducted three new Non-executive Independent Directors: Mr. N. S. Venkatesh, Mr. Satyajit Dwivedi, and Mr. Phani Shankar.
- Revamped Security Operation Center (SOC) services for advanced cyber risk monitoring.
- 90+ features were shipped in Production in AU 0101 and AU 0101 Business in Q3’FY26.
Asset Quality and Provisioning
The bank maintained stable asset quality:
- Slippages declined by 13% QoQ to ₹791 Cr.
- GNPA declined by 11bps to 2.30%.
- Credit cost declined to 0.78% of average assets.
Strategic Initiatives and Outlook
AU Small Finance Bank is focused on:
- Continuing to invest in technology.
- Expanding its distribution network.
- Maintaining a strong asset quality.
- Driving sustainable growth.
- Received approval from Govt. of India for increase in foreign investment limit in the paid-up capital of the Bank from 49% to maximum permissible limit of 74%.
Deposit and Liquidity
- CASA ratio remained stable at approximately 29%.
- Cost of Funds (CoF) declined by 22bps to 6.61% in Q3’FY26.
- Liquidity Coverage Ratio (LCR) averaged 118% for the quarter.
Source: BSE
