Earnings Review
AU Small Fin Bk's PAT growth at 16-qtr high, provisions fall
This story was originally published at 19:26 IST on 27 April 2026
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--AU Small Finance Bank Jan-Mar net profit INR 8.32 bln
--Analysts saw AU Small Finance Bank Jan-Mar net profit at INR 7.48 bln
--AU Small Fin Bk Jan-Mar net profit INR 8.32 bln vs INR 5.04 bln year ago
--AU Small Fin Bk Jan-Mar total income INR 57.50 bln vs INR 50.31 bln yr ago
--AU Small Finance Bank to pay INR 1 per share dividend
--AU Small Finance Bank appoints Gaurav Jain as CFO from Mon
--AU Small Finance Bank to raise INR 75 bln via equity
--AU Small Finance Bank to raise INR 60 bln via debt
--AU Small Finance Bk Jan-Mar provisions INR 2.69 bln vs INR 6.35 bln yr ago
--AU Small Finance Bank gross NPA ratio 2.03% on Mar 31 vs 2.30% qtr ago
--AU Small Finance Bank net NPA ratio 0.74% on Mar 31 vs 0.88% qtr ago
--AU Small Finance Bank Basel-II capital adequacy ratio 18.68% on Mar 31
--AU Small Fin Bk FY26 net profit INR 26.41 bln vs INR 21.06 bln year ago
--AU Small Fin Bk FY26 total income INR 216.14 bln vs INR 185.90 bln year ago
--AU Small Fin Bank Jan-Mar NII INR 25.82 bln vs INR 20.94 bln year ago
--AU Small Fin Bank Jan-Mar net interest margin 5.96% vs 5.70% qtr ago
--AU Small Finance Bank provision coverage ratio at 85% on Mar 31
--AU Small Fin Bk Jan-Mar yield on gross advances 13.8%
--AU Small Fin Bk: Gross loans at INR 1.40 tln on Mar 31, up 21% on yr
--AU Small Fin Bk: Deposits at INR 1.53 tln on Mar 31, up 23% on yr
--AU Small Fin Bk Jan-Mar slippages INR 6.59 bln vs INR 7.91 bln qtr ago
--AU Small Finance Bank: CASA ratio at 28% on Mar 31
By Nandini Sinha
MUMBAI – AU Small Finance Bank reported a strong on-year growth in net profit for the March quarter as the lender's provisions and contingencies fell sharply during the period. The lender's bottom line grew at its fastest pace in 16 quarters.
The bank's net profit rose over 65% on year to INR 8.32 billion in the March quarter. Analysts had estimated the lender's net profit for Jan-Mar at INR 7.48 billion.
The lender's provisions and contingencies were INR 2.69 billion in the March quarter, down nearly 58% from INR 6.35 billion in the year-ago period. The lender's total income for the reporting quarter rose to INR 57.50 billion, up over 14% on year.
The bank's net interest income for the March quarter rose to INR 25.82 billion, up over 23% on year. It was slightly above the Street's estimate of INR 25.11 billion. Its net interest margin expanded to 5.96% in the March quarter from 5.70% in the trailing quarter.
The lender also reported an improvement in its asset quality on a sequential basis. Its gross non-performing asset ratio was 2.03% as on Mar. 31, down from 2.30% as on Dec. 31. The net non-performing asset ratio improved to 0.74% from 0.88% in the trailing quarter. AU Small Finance Bank's Basel-II capital adequacy ratio was 18.68% on Mar. 31. Its slippages fell nearly 17% to INR 6.59 billion from INR 7.91 billion in the December quarter.
For 2025-26 (Apr-Mar), the bank's net profit was INR 26.41 billion, up 25% on-year. The total income was INR 216.14 billion, up over 16% from INR 185.90 billion for FY25.
The bank's total expenses, excluding provisions and contingencies, rose nearly 18% on year to INR 43.99 billion. For the March quarter, operating expenses rose to INR 19.62 billion, up nearly 26% from a year ago.
The bank's gross loans were INR 1.40 trillion on Mar. 31, up 21% on year and 8% on quarter. The yield on gross advances was stable quarter-on-quarter at 13.8%. Total deposits grew 23% on year and 10% sequentially to INR 1.53 trillion on Mar. 31.
The lender's provision coverage ratio, including technical write-offs, was 85% on Mar. 31. The current account savings account ratio as of Mar. 31 was 28%.
AU Small Finance Bank will pay a dividend of INR 1 per share for FY26. The bank will raise INR 75 billion through issuance of equity shares and INR 60 billion through debt instruments.
The bank further announced that it has appointed Gaurav Jain as the chief financial officer, effective Monday. Shares of AU Small Finance Bank ended over 2% lower at INR 1,043 apiece on the National Stock Exchange Monday. End
Edited by Tanima Banerjee
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