What was filed
AU Small Finance Bank released its unaudited results for the quarter and half-year ended September 30, 2026, approved by its board the same day. The release covers profitability, balance-sheet growth and asset quality, along with several operational and leadership updates.
The quarter's headline is a sharp rise in profit alongside continued expansion in both the deposit franchise and the loan book, with deposit growth running at roughly 1.6x system growth and loan growth at about 1.3x.
Margins, asset quality and the balance sheet
Per the filing, net interest margin widened year-on-year, helped by a fall in cost of funds even as advance yields eased slightly on a changing mix. Net interest income grew strongly and net provisions declined — which the bank cited as a driver of the profit jump.
Asset-quality metrics improved: both gross and net NPA ratios were lower than a year earlier, with provision coverage at 83% including technical write-offs. The bank highlighted CASA deposit growth and said stable deposits form 79% of the total.
Beyond the numbers
The bank said ICRA upgraded its long-term credit rating outlook to Positive from Stable while reaffirming the AA rating — a signal for a lender whose funding costs track its credit standing. AU also disclosed it holds an in-principle RBI approval to transition into a Universal Bank.
Operational updates included the appointment of Anil Agarwal as Senior Executive Group Head – Commercial & Institutional Banking, Amol Padhye formally assuming the Chief Risk Officer role, a net 183 touchpoints added during the quarter, and SEBI approval to provide UPI Sponsorship Services under the ASBA framework. The bank also noted its Wheels vehicle-finance book crossed ₹50,000 crore and now accounts for roughly one-third of the gross loan portfolio.