AU Small Finance Bank Q3 FY26 Investor Presentation Released
AU Small Finance Bank reported Q3 FY26 PAT of ₹668 Cr, up 26% YoY. Loan growth was 19.3% YoY to ₹1.30 Lakh Cr, and deposits grew 23.3% YoY to ₹1.38 Lakh Cr. GNPA improved to 2.30%. The bank also received approval to increase foreign investment limit to 74%.
The reported financial results show significant growth and improvement across key metrics like profitability, asset quality, and loan/deposit growth, which are material to investors.
The bank reported strong YoY and QoQ growth in PAT, loan, and deposit figures, along with improvements in asset quality and a reduction in credit costs. The increase in foreign investment limit is also a positive development.
AU Small Finance Bank Limited has released its Investor Presentation for the Unaudited Financial Results for the Quarter and Nine Months ended December 31, 2025. This follows their earlier intimation for a Conference Call.
The presentation highlights a strong performance across various parameters for Q3 FY26. Profitability saw a 26% year-on-year (YoY) and 19% quarter-on-quarter (QoQ) growth in Profit After Tax (PAT) to ₹668 Crore. Return on Assets (RoA) and Return on Equity (RoE) stood at 1.6% and 14.3% respectively. Excluding a one-off impact from the New Labour Code, PAT was ₹682 Crore with RoA/RoE at 1.6%/14.6%.
Loan growth was robust at 19.3% YoY (5.7% QoQ) to ₹1.30 Lakh Crore, outpacing the banking sector's credit growth of approximately 14.4%. Deposit growth was also strong at 23.3% YoY (4.5% QoQ) to ₹1.38 Lakh Crore, exceeding the banking sector's deposit growth of about 12.7%. The Cost of Funds declined by 22 basis points (bps) QoQ to 6.61%.
Asset quality showed improvement, with slippages declining by 13% QoQ to ₹791 Crore. Gross Non-Performing Assets (GNPA) decreased by 11 bps to 2.30%, while Net Non-Performing Assets (NNPA) remained stable at 0.88%. Credit cost declined significantly by 41 bps QoQ to 0.78% of average assets.
Key non-financial highlights include the induction of three new Independent Directors and the re-appointment of one. The bank also detailed succession planning updates, including executive changes for Deputy CEO and a new Executive Director. New product initiatives include an Exclusive Banking Program for Chartered Accountants and the 'M' Circle proposition for women. The bank also received approval to increase its foreign investment limit from 49% to 74%.
Technologically, the bank emphasized its investments in a robust tech backbone, AI implementation for customer engagement and operational efficiency, and ongoing upgrades to consumer-facing channels. The presentation can be accessed on the bank's website, and audio recordings/transcripts of the conference call will also be made available there.
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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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