AU Small Finance Bank Q2 FY27: Profit Surges 53% to ₹858 Cr, Deposits Up 29%
AU Small Finance Bank reported Q2 FY27 PAT of ₹858 crore, up 53% YoY. Deposits grew 29% to ₹50,289 crore, and loans grew 25% to ₹1,53,769 crore. NIM improved to 5.8%. Mr. Anil Agarwal joined as Senior Executive Group Head and Mr. Amol Padhye became Chief Risk Officer. ICRA upgraded outlook to Positive.
Significant growth in key financial metrics like profit, deposits, and loans, coupled with leadership changes and a credit rating upgrade, are material events that will likely have a high impact on investor perception and the bank's stock performance.
The bank reported strong year-on-year growth in profits, deposits, and loans, along with an improved NIM and credit cost. Leadership appointments and a credit rating upgrade further contribute to a positive sentiment.
AU Small Finance Bank Limited announced its unaudited financial results for the quarter and half-year ended September 30, 2026. The bank reported a strong all-round performance with Profit After Tax (PAT) growing by 53% year-on-year (YoY) to ₹858 crore in Q2 FY27. Core Pre-Provisioning Operating Profit (PPoP) grew by 31% YoY to ₹1,480 crore.
Net Interest Income (NII) increased by 32% YoY to ₹2,820 crore, while Net Interest Margin (NIM) improved by 33 basis points YoY to 5.8%. The Cost of Funds (CoF) declined by 43 basis points YoY to 6.41%. Core other income grew by 16% YoY to ₹736 crore, driven by credit card and transaction banking fees. Credit cost improved by 45 basis points YoY to 0.8%.
The bank's deposit book stood at ₹1,70,460 crore, registering a YoY growth of 28.6%. CASA deposits grew by 29% YoY to ₹50,289 crore, with a CASA ratio of 29.5%. The Gross Loan Portfolio (GLP) stood at ₹1,53,769 crore, a YoY growth of 25.1%. Gross advances were up 27.9% YoY to ₹1,50,291 crore. Asset quality improved with GNPA ratio declining to 1.99% and NNPA ratio to 0.81%.
For the half-year ended September 30, 2026 (H1 FY27), PAT grew by 45% YoY to ₹1,654 crore. Core PPoP grew by 36% YoY to ₹2,906 crore. RoA stood at 1.7% and RoE at 15.8% for H1 FY27.
The bank also announced key leadership appointments: Mr. Anil Agarwal joined as Senior Executive Group Head – Commercial & Institutional Banking, and Mr. Amol Padhye formally assumed the role of Chief Risk Officer. ICRA Ratings upgraded the bank's long-term credit rating outlook to Positive from Stable, reaffirming the long-term rating at AA.
Commenting on the performance, Mr. Sanjay Agarwal, Founder, MD & CEO, highlighted the bank's resilient performance amidst global uncertainties and emphasized the focus on customer interests, governance, and future investments.
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