AU Small Finance Bank Q2'FY27 PAT Up 53% to ₹858 Cr; RoA/RoE at 1.7%/16.1%
AU Small Finance Bank's Q2'FY27 PAT surged 53% YoY to ₹858 Cr. RoA and RoE were 1.7% and 16.1% respectively. Gross advances grew 25% YoY to ₹1.54 lac Cr, and deposits increased 29% YoY to ₹1.70 lac Cr. GNPA improved to 1.99% and NNPA to 0.81%. The bank is enhancing its AI and digital capabilities.
The announcement contains significant financial performance metrics and strategic updates, which are material for investors and stakeholders, indicating a high impact on the company's valuation and market perception.
The bank reported strong year-on-year growth in PAT, NII, advances, and deposits, along with improvements in asset quality and key profitability ratios. Investments in technology and AI are also highlighted positively.
AU Small Finance Bank Limited has announced its unaudited financial results for the quarter and half-year ended September 30, 2026. The bank reported a Profit After Tax (PAT) of ₹858 crore for Q2'FY27, marking a significant 53% year-on-year increase from ₹561 crore in Q2'FY26. The Return on Assets (RoA) for the quarter stood at 1.7%, and Return on Equity (RoE) was 16.1%.
Net Interest Income (NII) grew by 32% year-on-year to ₹2,820 crore, supported by a 33 bps expansion in Net Interest Margin (NIM) to 5.8%. Core Profit Before Provisions and Contingencies (PPoP) increased by 31% year-on-year to ₹1,480 crore, driven by a 32% growth in NII and a 16% rise in core other income.
The bank's gross loan portfolio grew by 25% year-on-year to ₹1.54 lac crore, outpacing the estimated banking sector growth of approximately 19%. Deposits also saw robust growth, increasing by 29% year-on-year to approximately ₹1.70 lac crore, compared to an estimated sector growth of around 18%. CASA deposits grew by 29% year-on-year, with the CASA ratio improving to 29.5%.
Asset quality showed improvement, with Gross Non-Performing Assets (GNPA) at 1.99% and Net Non-Performing Assets (NNPA) at 0.81%. Slippages improved year-on-year to 2.6%, and credit cost declined to 0.8%. The bank also reported strengthening its digital and AI capabilities, with over 95% of transactions done digitally and significant advancements in AI-native banking solutions.
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AU Small Finance Bank Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by AU Small Finance Bank Limited. Read the original for the full detail.