Analyst Concall
AU Small Fin Bk sees no direct hit but wary of ripples of war
This story was originally published at 19:44 IST on 27 April 2026
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--AU Small Fin Bk: No exposure to borrowers hit by war-related disruptions
--CONTEXT: Comments by AU Small Fin Bk mgmt at analyst call post Q4 earnings
--AU Small Fin Bk: Aim to maintain return on assets at 1.8% in FY27
By Krity Ambey and Afra Abubacker
NEW DELHI – AU Small Finance Bank has no direct exposure to borrowers impacted by supply chain disruptions due to the West Asia war, but it is watchful of the second-order impact of the war, the bank's management said Monday. Over half of the bank's INR-1.40-trillion loan portfolio entails secured retail assets, followed by commercial banking portfolios including energy efficiency financing, and business and agri banking.
The bank Monday reported a net profit of INR 8.32 billion in the March quarter, up 65% on year, thanks to a 58% fall in provisions. The bank's net interest income also jumped 23% on year to INR 25.82 billion in Jan-Mar.
The small finance bank's return on assets also improved 46 basis points on year to 1.8% in the March quarter. The improvement in the final quarter of 2025–26 (Apr-Mar) was more of a seasonal trend, the management said on a call with analysts after releasing the earnings for Jan-Mar. "But we hope to maintain the RoA (return on assets) at that level for the full year (FY27)," the management added. The bank's return on assets for FY26 was 1.6%, compared with 1.5% in FY25. Shares of AU Small Finance Bank, which declared its earnings after market hours, ended 2% lower Monday at INR 1,043 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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