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AU Small Finance Bank
SectorFinancial Services
AU Small Finance Bank Limited is an Indian banking and financial services company. It offers retail banking, wholesale banking, and treasury operations. The bank provides personal banking services including savings accounts, salary accounts, and fixed deposits. It also offers various types of loans such as car loans, home loans, personal loans, and tractor loans. AU Small Finance Bank operates in India through a network of branches, banking outlets, business correspondents, and ATMs across multiple states and union territories. The bank was formerly known as Au Financiers India Limited and began its banking operations in April 2017 after receiving approval from the Reserve Bank of India to establish a Small Finance Bank.
In the news
HDFC Bank's Q2FY27: Deposit Surge, Loan Growth, and the PSU Rally
AU Small Finance Bank's MFIB network crosses 1,000 branches
AU Small Finance Bank crosses ₹50,000 cr vehicle loan milestone
RBI approves ICICI Prudential's 9.95% stake in 4 banks
ICICI Securities recommends AU Small Finance Bank buy at ₹1250 target
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Industrial Stocks Rally to 52-Week Highs on AI Infrastructure Demand
Q1 FY26-27 Earnings: Banking Divergence, Energy Bets, and Maruti's SUV Gamble
AU SFB shares surge 5% on 37% Q1 profit jump, Nomura raises target to ₹980
AU Small Finance Bank launches co-branded credit card with Zaggle
AU Small Finance Bank Q1 deposits up 24%, loan book grows 23%
AU Small Finance Bank Hits Fresh 52-Week High at ₹1,080
Trading Ideas: Pidilite, HDFC Bank, Oberoi Realty on June 25
AU Small Finance Bank rises for third straight session
AU Small Finance Bank hikes FD rates up to 7.9% for seniors
ED arrests ex-Haryana official in ₹645 cr IDFC Bank fraud case
AU Small Finance Bank rises 1.24% for third straight session
AU Small Finance Bank partners with Intellect for AI banking
CBI Probes 5 IAS Officers in ₹590 Cr Haryana Bank Scam Case
Kotak's Strategic Bet on AU Small Finance Bank: A ₹7,600 Crore Calculated Move
The Quarter story
The two most recent quarterly results, compared side-by-side.
AU Small Finance Bank delivers strong profit growth and margin expansion, though rising credit costs and wholesale funding reliance warrant attention.
Net profit grew from ₹581 Cr to ₹796 Cr from Q1 FY26 to Q1 2026-27, driven by higher interest earnings and controlled costs.
Credit cost spiked from 0.34% to 0.8% from Q1 FY26 to Q1 2026-27, indicating a sharp increase in loan loss provisioning.
Gross NPA ratio improved from 2.47% to 2.10% from Q1 FY26 to Q1 2026-27, reflecting better credit quality management.
Borrowings rose from ₹10,649 Cr to ₹13,419 Cr from Q1 FY26 to Q1 2026-27, showing higher reliance on wholesale funding.
Net interest margin expanded from 5.4% to 5.9% from Q1 FY26 to Q1 2026-27, supported by a drop in cost of funds to 6.48%.
Commercial banking yield declined from 10.9% to 10.3% from Q1 FY26 to Q1 2026-27, signaling margin compression in corporate lending.
Inclusive banking loan portfolio grew from ₹6,232 Cr to ₹7,488 Cr from Q1 FY26 to Q1 2026-27, maintaining a stable 25.2% yield.
Stressed loan exposure grew from ₹3,032 Cr to ₹3,165 Cr from Q1 FY26 to Q1 2026-27, highlighting persistent credit risk.
Provision coverage ratio rose from 83% to 85% from Q1 FY26 to Q1 2026-27, ensuring stronger buffers against loan defaults.
Operating expenses rose from ₹1,543 Cr to ₹1,949 Cr from Q1 FY26 to Q1 2026-27, reflecting rising costs from network and staff expansion.
Company insights, generated from the most recent coverage.
Deposits at ₹1.7 lakh crore grew 28.6% YoY with CASA up 29% — CASA growing as fast as the total book means AU is scaling on cheap money, not bidding for term deposits like stressed private peers.
Roughly 90% of AU's book is secured, so even at 2.0–2.5x nominal GDP growth its loss-given-default stays structurally low — this is what lets it carry 26x PE and 3.77x PB while PSU banks trade under 1x book.
RBI's in-principle approval to convert from SFB to a universal bank is the single biggest de-risking event in AU's story — it removes the structural funding ceiling that capped balance-sheet growth and justified a narrower product set.