AU Small Finance Bank delivered exceptional fourth-quarter results with net profit surging 65.1% year-on-year to ₹831.4 crore compared to ₹504 crore in the same period last year, as reported by CNBC TV18. For the full financial year FY26, the bank's net profit stood at ₹2,641 crore, rising 25% year-on-year from ₹2,106 crore in FY25. The strong performance was driven by net interest income growing 23.3% year-on-year to ₹2,582.3 crore from ₹2,093.9 crore, supported by a 24 basis points expansion in net interest margin to 5.96% from 5.70% in the previous quarter. Provisions declined significantly to ₹269 crore in Q4 FY26 from ₹635.11 crore a year ago, falling 58% year-on-year and 19% sequentially.
The bank demonstrated substantial improvement in asset quality with gross non-performing assets falling to ₹2,755.6 crore from ₹2,880.5 crore in the previous quarter, while net non-performing assets declined to ₹989.9 crore from ₹1,091.5 crore. In percentage terms, gross NPA stood at 2.03% versus 2.30% quarter-on-quarter, while net NPA came in at 0.74% versus 0.88% in the previous quarter. The cost of funds declined 12 basis points sequentially to 6.49%, and credit cost improved to 0.96% of average assets in FY26 from 1.3% in FY25. Return on assets stood at 1.8% for Q4 FY26 and 1.6% for FY26, while return on equity was 17.0% for the quarter and 14.2% for the full year.
The Reserve Bank of India has approved the elevation of Vivek Tripathi as executive director of AU Small Finance Bank for a three-year period, according to reports from The Economic Times. Tripathi, currently serving as the bank's chief credit officer, will officially assume his new responsibilities from Friday. The RBI approval represents a significant leadership transition within the small finance banking sector, with Tripathi set to take charge as Whole-time Director (WTD) with effect from April 24, 2026, as confirmed by AU Small Finance Bank in a regulatory filing. Additionally, the bank has appointed Gaurav Jain as the Chief Financial Officer effective April 27, 2026, as reported by CNBC TV18.
The bank demonstrated robust business growth with total deposits growing 23% year-on-year and 10% quarter-on-quarter to ₹1,52,661 crore, while CASA deposits increased about 20% year-on-year and nearly 9% sequentially. Gross loan portfolio grew 21% year-on-year and 8% quarter-on-quarter to ₹1,40,327 crore, with secured businesses, including retail and commercial, rising 23% year-on-year and 7% sequentially. Unsecured businesses, comprising MFI, credit card and personal loans, grew 7% sequentially, led by MFI and personal loans, while declining 1% year-on-year. During Q4 FY26, the bank added 64 physical touchpoints, including 13 new deposit branches, taking the total network to 2,790.
The bank emphasized that Tripathi's elevation to the board underscores its focus on building next-generation leadership internally and institutionalising a long-term succession plan, as reported by The Economic Times. AU Bank founder cum managing director Sanjay Agarwal stated that the appointment reflects their structured succession planning as they prepare the Bank for the next phase of growth. This leadership transition comes as the bank continues its transition process following its universal banking license received from RBI in August last year, with the bank obtaining shareholders' approval for the appointment in due course, as confirmed in the regulatory filing.
