AU Small Finance Bank reported a 53% YoY rise in PAT to Rs 858 Cr for Q2 FY27, while net interest income (NII) increased 32% to Rs 2,820 crore. The performance was supported by growth in deposits and advances, improved net interest margin and higher fee income.
The results cover the quarter ended September 30, 2026. For the first half of FY27, the Jaipur-headquartered bank reported PAT of Rs 1,654 Cr, up 45% YoY, and NII of Rs 5,516 crore, also up 32%.
- AU Small Finance Bank Q2 FY27: Key Financial Figures
|
Metric |
Q2 FY27 |
Year-on-year change |
|---|---|---|
|
Profit after tax (PAT) |
Rs 858 Cr |
Up 53% |
|
Net interest income (NII) |
Rs 2,820 Cr |
Up 32% |
|
Net interest margin (NIM) |
5.8% |
Up 33 basis points |
|
Core other income |
Rs 736 Cr |
Up 16% |
|
Core pre-provisioning operating profit (PPoP) |
Rs 1,480 Cr |
Up 31% |
NIM, the difference between the yield a bank earns on loans and investments and the cost of its funding, rose to 5.8% from 5.5% a year earlier. Core other income grew from Rs 634 cr to Rs 736 Cr, with credit-card fees and transaction banking contributing to the increase.
- Deposits Cross Rs 1.70 Lakh Crore as Loan Portfolio Expands
The bank’s total deposits grew 28.6% YoY to Rs 1,70,460 crore, up 8.1% from the previous quarter. CASA deposits, current and savings account balances, rose 29.1% to approximately Rs 50,289 cr, with the CASA ratio at 29.5%.
On the lending side, the gross loan portfolio expanded 25.1% YoY to Rs 1,53,769 Cr. Gross advances reached Rs 1,50,291 Cr, up 27.9%.
Asset quality also improved. The gross non performing asset (GNPA) ratio declined by 42 basis points YoY to 1.99%, while the net NPA ratio fell by seven basis points to 0.81%. These figures indicate an improvement in reported stressed assets even as the bank expands its loan book.
H1 FY27: Profit Rises 45% to Rs 1,654 Cr
For the six months ended September 30, 2026, AU Small Finance Bank reported:
-
Net interest income: Rs 5,516 crore, up 32% YoY.
-
Core PPoP: Rs 2,906 Cr, up 36%.
-
Profit after tax: Rs 1,654 Cr, up 45%.
The combination of higher income, a stronger margin and improved asset-quality ratios will be important to monitor as the bank grows its lending and deposit franchises. Deposit mobilisation and credit costs remain key factors in assessing whether earnings growth can be sustained.
- Founder Sanjay Agarwal’s Role in AU Bank’s Growth
Sanjay Agarwal, Founder, Managing Director and CEO of AU Small Finance Bank, established AU Financiers in 1996 to serve small entrepreneurs and underserved borrowers. The business began with commercial vehicle financing before transforming into a small finance bank in 2017.
The latest results reflect the scale the institution has built since that transition. For investors, the next indicators to watch include deposit growth, funding costs, credit quality and the bank’s progress towards its broader banking ambitions.
Disclaimer: This article is for information purposes only and is not investment advice. Investments in securities are subject to market risks. Please read the official offer documents before investing.
