AU Small Finance Bank Q4 FY26: PAT surges 65% YoY to ₹832 cr, FY26 profit up 25%
AU Small Finance Bank reported Q4 FY26 PAT of ₹832 cr (up 65% YoY) and FY26 PAT of ₹2,641 cr (up 25% YoY). Deposits grew 23% YoY to ₹1.53 lakh crore, and loans grew 21% YoY to ₹1.40 lakh crore. The bank received RBI approval for its Universal Bank transition and declared a ₹1 per share dividend for FY26.
The announcement details strong financial performance, significant strategic advancements like Universal Bank transition approval, and leadership appointments, all of which are material to investors and stakeholders.
The bank reported strong financial results with significant year-on-year growth in profit, NII, deposits, and loans. Improved asset quality and strategic approvals also contribute to a positive sentiment.
AU Small Finance Bank Limited announced its audited financial results for the quarter and financial year ended March 31, 2026. The bank reported a strong all-round performance, with Profit After Tax (PAT) for Q4 FY26 surging 65% year-on-year (YoY) to ₹832 crore and 25% quarter-on-quarter (QoQ) to ₹832 crore. For the full financial year FY26, the bank's profit grew by 25% YoY to ₹2,641 crore.
The Net Interest Income (NII) for Q4 FY26 grew by 23% YoY and 10% QoQ to ₹2,582 crore. The Net Interest Margin (NIM) expanded by 24 basis points QoQ to 5.96% in Q4 FY26. The Cost of Funds (CoF) further declined by 12 bps QoQ to 6.49% in Q4 FY26.
Total deposits grew by 23% YoY and 10% QoQ to ₹1,52,661 crore, with CASA deposits growing by 20% YoY to ₹43,357 crore. The Gross Loan Portfolio (GLP) grew by 21% YoY and 8% QoQ to ₹1,40,327 crore. The bank's asset quality improved sequentially, with the Gross Non-Performing Asset (GNPA) ratio at 2.03% as of March 2026, down from 2.30% in December 2025, and the Net Non-Performing Asset (NNPA) ratio at 0.74% compared to 0.88% in December 2025.
In strategic updates, the bank received approval from RBI to transition into a Universal Bank without the mandatory Non-Operative Financial Holding Company (NOFHC) requirement under certain conditions. The bank has filed for the final license and awaits regulatory approval. Key leadership appointments were also approved, including the reappointment of Mr. Sanjay Agarwal as MD & CEO, the assumption of role by Mr. Vivek Tripathi as Executive Director, and the appointment of Mr. Gaurav Jain as Chief Financial Officer (CFO).
The bank is significantly embedding AI into its core operating model, launching its first AI-native Loan Origination System for Gold loans and establishing a Centre of Excellence for AI use cases. The bank also declared a dividend of ₹1 per share for FY26.
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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.