AU Small Finance Bank540611Quarterly results

Q2FY27 release: profit up 53%, deposits up 28.6%, loans up 25.1%; margin and asset quality improve

Q2FY27 press release: PAT ₹858 cr, up 53% YoY.

By ScoutQuest · Sat 24 Oct 2026, 3:37 PM IST · 2 min read

PAT: ₹858 cr, up 53% YoY
Deposits: ₹1,70,460 cr (+28.6%)
Gross Loan Portfolio: ₹1,53,769 cr (+25.1%)

AU Small Finance Bank has published the press release that accompanies its unaudited financial results for the quarter and half year ended September 30, 2026. The release describes growth in profit and in the loan and deposit books, along with improved asset quality ratios.

Profit and loss, Q2FY27

Profit after tax ₹858 cr, up 53% from ₹561 cr in Q2FY26
Net interest income ₹2,820 cr, up 32% from ₹2,144 cr
Net interest margin 5.8%, up 33 bps from 5.5%
Cost of funds 6.41%, down 43 bps from 6.83%
Core pre-provisioning operating profit ₹1,480 cr, up 31% from ₹1,131 cr
Provisions ₹359 cr, down 25% from ₹481 cr
Annualised credit cost (including guarantee premium) 0.8% vs 1.2%
Return on assets 1.7% and return on equity 16.1%

Balance sheet as on September 30, 2026

Total deposits ₹1,70,460 cr, up 28.6% year-on-year and 8.1% sequentially
CASA deposits ₹50,289 cr, up 29.1% year-on-year; CASA ratio 29.5%
Current account deposits ₹11,693 cr, up 55% year-on-year
Gross loan portfolio ₹1,53,769 cr, up 25.1% year-on-year
Gross advances ₹1,50,291 cr, up 27.9% year-on-year
Total assets ₹2,11,804 cr, against ₹1,65,542 cr a year earlier

Asset quality

Gross NPA ratio 1.99%, against 2.41% in Q2FY26
Net NPA ratio 0.81%, against 0.88% in Q2FY26
Provision coverage ratio 83% including technical write-off
Collection efficiency in non-overdue MFI loans 99.6%

First half, H1FY27

Profit after tax ₹1,654 cr, up 45% from ₹1,142 cr
Core pre-provisioning operating profit ₹2,906 cr, up 36%
Net interest income ₹5,516 cr, up 32%; NIM 5.8% vs 5.4%
Return on assets 1.7% and return on equity 15.8%

Other points in the release

ICRA upgraded the long-term credit rating outlook to AA/Positive from AA/Stable, while re-affirming the AA rating
The bank added a net 183 touchpoints during the quarter, including 45 new liability branches and over 100 asset centres, taking the total to 3,103 touchpoints across 21 states and 4 union territories
Customer base of 128 lac+ and staff strength of about 61,000
The wheels vehicle-finance business crossed ₹50,000 cr in gross loan portfolio in August 2026 and is about one-third of the book
The bank received SEBI approval for UPI Sponsorship Services under the ASBA framework for IPOs and public issues
Mr. Anil Agarwal joined as Senior Executive Group Head - Commercial & Institutional Banking; Mr. Amol Padhye assumed office as Chief Risk Officer

What this means for a reader

The release is the company's own summary of its quarterly numbers. It points to profit growing faster than the balance sheet, a wider lending margin, lower cost of funds, a lower credit cost and lower bad-loan ratios, along with a rating outlook change. These are the operating trends the company has highlighted; the results are unaudited. How the market reads them can depend on other factors as well.

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