AU Small Finance Bank has announced a robust performance for the quarter and financial year ended March 31, 2026. The bank achieved a 25% annual profit growth to ₹2,641 crore, with a 65% year-on-year surge in PAT for the final quarter. With total deposits reaching ₹1,52,661 crore and a significant expansion in its digital capabilities, the bank is strategically positioning itself for its upcoming transition into a Universal Bank.
Quarterly and Annual Financial Highlights
For the quarter ended March 31, 2026, AU Small Finance Bank reported a strong financial performance, with Profit After Tax (PAT) rising by 65% year-on-year to ₹832 crore. For the full FY26, the bank recorded a profit of ₹2,641 crore, marking a 25% growth compared to the previous year. Net Interest Income (NII) for the quarter grew by 23% year-on-year to ₹2,582 crore, while the Net Interest Margin (NIM) expanded by 24 basis points quarter-on-quarter to 5.96%.
Strategic Growth and Asset Quality
The bank demonstrated strong balance sheet growth, with total deposits increasing by 23% year-on-year to ₹1,52,661 crore and the gross loan portfolio growing by 21% to ₹1,40,327 crore. Asset quality improved significantly, with the Gross Non-Performing Assets (GNPA) ratio declining to 2.03% in March 2026, down from 2.30% in December 2025. The Net NPA ratio also showed improvement, standing at 0.74%.
Innovation and Digital Transformation
AU Small Finance Bank continues to prioritize technology, launching its first Agentic AI platform and an AI-native Loan Origination System, which recently went live for its Gold Loan business. Furthermore, the bank has successfully completed the core banking migration of Fincare SFB, marking the final stage of the integration. The bank also reported a revamped AU0101 retail app and the launch of India’s first LED-enabled credit card, signaling a commitment to a tech-first operational model.
Leadership and Universal Banking Milestone
The bank is moving toward its Universal Banking transition, having filed for a final license in March 2026. Leadership updates include the reappointment of Mr. Sanjay Agarwal as MD & CEO for three years, and the appointment of Mr. Gaurav Jain as the new Chief Financial Officer. Additionally, Mr. Vivek Tripathi has assumed the role of Executive Director, supporting the bank’s continued focus on growth and operational excellence.
Source: BSE
