AU Small Finance Bank Limited (AUBANK)
₹989.40 -1.33% last close, 16 Oct
Q2 FY27 results
📅 Next results: 24 Oct 2026 (board meeting)AU Small Finance Bank Limited's board meets on 24 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, AU Small's net interest income was ₹2,695 Cr (+31.8% year on year, +4.4% on the previous quarter), and net profit ₹796 Cr (+37.0% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹2,695 | +31.8% | +4.4% |
| Operating profit | ₹1,435 | +9.4% | — |
| Net profit | ₹796 | +37.0% | -4.3% |
| EPS (₹) | 10.63 | +36.3% | -4.4% |
| Gross NPA | 2.10% | — | — |
AUBANK delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 53.97% of the AUBANK shares traded on NSE were taken to delivery, against the stock's own 20-session average of 55.76%. That is close to its usual level. In AUBANK futures, open interest rose 0.10% while the futures price fell 1.30%: short buildup (new short positions).
Delivery in the last 5 sessions: 56.0% · 52.6% · 54.5% · 56.9% · 54.0%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
AU Small Finance Bank Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate covers the quarter ended September 30, 2026, and was issued by the bank's Registrar and Share Transfer Agent, MUFG Intime India Private Limited. The RTA confirmed that securities received for dematerialisation during the period were processed and listed on stock exchanges within prescribed timelines. This is a standard regulatory compliance filing with no impact on business operations or financials.
- Compliance certificate submitted under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
- Covers dematerialisation activities for the quarter ended September 30, 2026
- Issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited on October 03, 2026
- Filed with NSE and BSE on October 08, 2026
AU Small Finance Bank released its provisional business update for Q2 FY27 ending September 30, 2026. Total deposits grew 28.6% YoY and 8.1% QoQ to ₹1,70,460 crore, supported by a 29.1% YoY increase in CASA deposits to ₹50,290 crore. Gross advances expanded 27.9% YoY (7.0% QoQ) to ₹1,50,290 crore, while the gross loan portfolio rose 25.1% YoY to ₹1,53,770 crore. The CASA ratio stood at 29.5%, ticking up slightly from 29.4% a year ago and 28.8% in Q1 FY27.
- Total deposits increased 28.6% YoY and 8.1% QoQ to ₹1,70,460 crore as of Sept 30, 2026
- CASA deposits grew 29.1% YoY and 10.8% QoQ to ₹50,290 crore, maintaining a CASA ratio of 29.5%
- Gross advances reached ₹1,50,290 crore, up 27.9% YoY and 7.0% QoQ
- Gross loan portfolio (including securitised/assigned portfolio) expanded 25.1% YoY to ₹1,53,770 crore
ICRA has reaffirmed AU Small Finance Bank's long-term rating of [ICRA]AA on ₹1,004 crore of Basel II Lower Tier II bonds and revised the outlook from Stable to Positive. Additionally, ICRA assigned an [ICRA]AA (Positive) rating to ₹100 crore of yet-to-be-placed Infrastructure Bonds, bringing total rated debt to ₹1,104 crore. The positive revision is driven by improving asset quality (Gross NPA down to 2.1% as of June 30, 2026, from 2.5% a year prior), a CAR of 18.9%, and an RoA of 1.6%. ICRA noted the bank's pending transition to a universal bank expected in FY2027.
- Outlook revised to Positive from Stable on ₹1,004 crore Tier-II bonds; [ICRA]AA rating reaffirmed
- Assigned [ICRA]AA (Positive) rating to ₹100 crore of infrastructure bonds
- Gross NPAs improved to 2.1% (Net NPA: 0.8%) as of June 30, 2026, down from 2.5% as of June 30, 2025
- Gross loan portfolio stood at ₹1,44,250 crore as on June 30, 2026, with secured retail loans comprising 67%
- Capital Adequacy Ratio stood at 18.9% (Tier I: 17.1%) as of June 30, 2026, vs 15.0% regulatory minimum
AU Small Finance Bank submitted a revised investor presentation for an institutional group meeting hosted by ICICI Securities on September 24, 2026. The presentation highlights a Gross Loan Portfolio reaching Rs 158 thousand crore and deposits at Rs 144 thousand crore in Q1FY27. Asset quality remained stable with Gross NPA at 2.1% and Net NPA at 0.8% in Q1FY27, alongside an annualized RoA of 1.7% and RoE of 15.6%. The bank also detailed its tech roadmap, including over Rs 3,000 crore invested in technology and plans for an agentic AI architecture.
- Gross Loan Portfolio stood at Rs 158 thousand crore in Q1FY27, growing at a 31% CAGR from FY18 to FY26
- Deposits stood at Rs 144 thousand crore in Q1FY27 with a CASA ratio of 29%
- Asset quality reflected GNPA at 2.1% and NNPA at 0.8% with annualized credit costs of 0.8% in Q1FY27
- Profitability metrics showed Q1FY27 annualized RoA at 1.7% and RoE at 15.6%
- Disclosed over Rs 3,000 crore total investment in technology and digital stack
AU Small Finance Bank submitted a revised investor presentation for an institutional investor meeting hosted by ICICI Securities on September 24, 2026. The presentation outlines the bank's track record, highlighting a Gross Loan Portfolio of ₹144,000 Cr and deposits of ₹158,000 Cr as of Q1 FY27. It also details ongoing operational strategies, including over ₹3,000 Cr invested in technology and AI architecture to transition toward a universal banking model. Asset quality figures shared include a GNPA of 2.1% and NNPA of 0.8% for Q1 FY27, with an annualized RoA of 1.7% and RoE of 15.6%.
- Deposits stood at ₹158,000 Cr and Gross Loan Portfolio reached ₹144,000 Cr as of Q1 FY27
- Asset quality in Q1 FY27 showed GNPA of 2.1%, NNPA of 0.8%, and credit costs of 0.8%
- Reported Q1 FY27 annualized RoA of 1.7% and RoE of 15.6% with a CASA ratio of 29%
- Highlighted over ₹3,000 Cr invested in technology stack, data fabric, and AI initiatives
AU Small Finance Bank has appointed Mr. Anil Agarwal as Senior Executive Group Head - Commercial & Institutional Banking, categorized as Senior Management Personnel (SMP), effective September 14, 2026. Mr. Agarwal brings nearly 30 years of banking experience, including over two decades at Axis Bank spanning transaction banking, government business, and corporate lending. The leadership addition aligns with the bank's ongoing transition toward a Universal Banking license, which requires scaling larger commercial exposures beyond traditional SFB thresholds. For context, the bank generated TTM revenue of ₹22,417 Cr and TTM PAT of ₹2,856 Cr as of Q1 FY27.
- Mr. Anil Agarwal appointed as Senior Executive Group Head - Commercial & Institutional Banking effective September 14, 2026
- Categorized as Senior Management Personnel (SMP) following NRC recommendation and Board approval
- Appointee holds nearly 3 decades of experience, including over 20 years in leadership roles at Axis Bank
- Supports the bank's strategic focus as it scales corporate, institutional, and transaction banking verticals
AU Small Finance Bank received approval from the Reserve Bank of India on September 8, 2026, permitting ICICI Prudential AMC to acquire an aggregate holding of up to 9.95% of the bank's paid-up share capital or voting rights. The approval encompasses schemes of ICICI Prudential Mutual Fund, AIFs, and PMS clients managed by the AMC. At the current market cap of Rs 80,379 crore, a 9.95% stake represents equity value of approximately Rs 7,998 crore. The approval remains subject to statutory compliance with the Banking Regulation Act, 1949, FEMA, and SEBI regulations.
- RBI letter dated September 8, 2026, approves stake acquisition up to 9.95%
- Covers ICICI Prudential AMC, mutual fund schemes, AIFs, and PMS clients
- Potential investment value represents up to ~Rs 7,998 crore based on bank's Rs 80,379 crore market cap
- Subject to compliance with Banking Regulation Act, 1949 and SEBI guidelines
AU Small Finance Bank Limited has allotted 4,11,669 equity shares of face value Rs. 10 each on September 8, 2026, pursuant to employee stock option exercises. The allotments were made across four plans: ESOP 2016 (14,111 shares), ESOP 2018 (18,828 shares), ESOP 2020 (2,15,966 shares), and ESOP 2023 (1,62,764 shares). Consequently, the bank's paid-up equity share capital increased from Rs. 7,50,57,80,960 to Rs. 7,50,98,97,650.
- Allotment of 4,11,669 equity shares of face value Rs. 10 each on September 8, 2026
- ESOP 2020 accounted for the largest tranche with 2,15,966 shares allotted
- ESOP 2023 accounted for 1,62,764 shares, alongside 18,828 shares under ESOP 2018 and 14,111 under ESOP 2016
- Paid-up share capital expanded to Rs. 7,50,98,97,650 from Rs. 7,50,57,80,960
AU Small Finance Bank has submitted its schedule for upcoming institutional investor and analyst meetings under Regulation 30 of SEBI Listing Regulations. The bank will participate in five distinct conferences between September 10, 2026, and September 23, 2026. The forums include UBS India Summit (Mumbai), Jefferies India Forum (Delhi), J.P. Morgan India Conference (Mumbai), BofA Asia Pacific Conference (Hong Kong), and CLSA Investor Forum (Hong Kong). All meetings will be conducted in physical format across individual and group sessions.
- Participating in UBS India Summit 2026 on September 10, 2026 in Mumbai
- Attending Jefferies 5th India Forum on September 17, 2026 in Delhi
- Engaging at J.P. Morgan India Conference and BofA Asia Pacific Conference on September 21, 2026 in Mumbai and Hong Kong respectively
- Attending CLSA 33rd Investor Forum in Hong Kong across September 22-23, 2026
AU Small Finance Bank has submitted the scrutinizer report and voting results for its 31st Annual General Meeting held on September 5, 2026. Shareholders approved all 8 ordinary and special resolutions with requisite majorities exceeding 96-99%. Key approvals include a dividend of ₹1 per equity share for FY 2025-26, an enhancement of borrowing limits up to ₹30,000 Crore, and enabling resolutions for raising debt and equity capital via QIP or other permissible modes.
- Shareholders approved a dividend of ₹1 per equity share of face value ₹10 for FY 2025-26 with 100% votes in favour.
- Special resolution passed to increase borrowing limits up to ₹30,000 Crore under Section 180(1)(c) of the Companies Act.
- Enabling resolutions approved for issuing non-convertible debt securities and raising fresh equity/convertible capital (99.8% approval).
- Overall shareholder participation was 82.58%, with 61.98 crore valid votes cast out of 75.06 crore total shares.
AU Small Finance Bank concluded its 31st Annual General Meeting on September 5, 2026, with 87 members in attendance via video conferencing. The bank placed 8 resolutions before shareholders, including the declaration of a ₹1 per equity share dividend for FY26 and an enhancement of borrowing limits up to ₹30,000 Crore under Section 180(1)(c). Enabling special resolutions were also tabled for raising funds via equity/QIP and non-convertible debt securities. Final voting results and the Scrutinizer's report are scheduled to be submitted on or before September 8, 2026.
- Conducted 31st AGM on September 5, 2026, attended by 87 members via video conferencing.
- Special resolution tabled to enhance borrowing limits up to ₹30,000 Crore.
- Ordinary resolution presented to declare a dividend of ₹1 per equity share (face value ₹10) for FY 2025-26.
- Enabling resolutions placed for issuing non-convertible debt securities and raising equity funds via QIP/other modes.
- Scrutinizer voting results to be submitted to exchanges on or before September 8, 2026.
AU Small Finance Bank Limited has scheduled participation in the Goldman Sachs Asia Leaders Conference 2026. The investor conference will take place physically in Hong Kong across two days on Monday, August 31, 2026, and Tuesday, September 01, 2026. The bank's management will conduct both individual and group meetings with institutional investors and analysts.
- Participating in Goldman Sachs Asia Leaders Conference 2026
- Scheduled for 2 days: August 31, 2026 and September 01, 2026
- Physical individual and group meetings to be held in Hong Kong
- Filing made in compliance with SEBI LODR Regulation 30
AU Small Finance Bank Limited has allotted 6,47,261 equity shares of face value Rs. 10 each on August 25, 2026, upon the exercise of employee stock options. The allotment includes shares under ESOP schemes of 2016, 2018, 2020, and 2023, with the largest chunks coming from ESOP 2023 (3,39,254 shares) and ESOP 2020 (2,79,258 shares). Consequently, the bank's paid-up equity share capital increases from Rs. 749.93 crore to Rs. 750.58 crore. This results in an immaterial equity dilution of under 0.1%.
- Allotted 6,47,261 equity shares of face value Rs. 10 pursuant to ESOP exercises
- ESOP 2023 and ESOP 2020 contributed 3,39,254 and 2,79,258 shares respectively
- Paid-up share capital increased from Rs. 7,49,93,08,350 to Rs. 7,50,57,80,960
- ESOP 2016 and ESOP 2018 accounted for 7,857 and 20,892 shares respectively
AU Small Finance Bank (AUBANK) has issued its FY26 Integrated Annual Report and scheduled its 31st AGM for September 5, 2026. The bank reported a 25.4% YoY increase in PAT to Rs 2,641 Cr, with total assets reaching Rs 1,91,797 Cr. Asset quality showed improvement as Gross NPA fell to 2.0% from 2.3% in FY25. The bank is currently in an 18-month transition period to become a Universal Bank following RBI's in-principle approval in August 2025.
- Total Assets increased by 21.5% YoY to reach Rs 1,91,797 Cr in FY26
- Gross Advances grew 25% YoY to Rs 1,36,041 Cr from Rs 1,08,778 Cr
- Net Interest Income (NII) rose to Rs 9,113 Cr from Rs 8,012 Cr in FY25
- Credit card portfolio reached ~Rs 2,200 Cr with approximately 1.0 million live cards
- Gross NPA improved to 2.0% in FY26 compared to 2.3% in the previous fiscal year
AU Small Finance Bank (Market Cap: ₹79,951 Cr) has scheduled three interactions with institutional investors and analysts in August 2026. The schedule includes physical conferences in Mumbai on August 13 (Equirus) and August 17 (Motilal Oswal), followed by a virtual group meeting on August 27. These meetings are routine disclosures under SEBI Listing Regulations. Investors typically look for updates on the bank's transition to a Universal Bank and the integration of the Fincare portfolio during such interactions.
- 3 institutional investor interactions scheduled between August 13 and August 27, 2026
- 2 physical conferences to be held in Mumbai on August 13 and August 17
- 1 virtual group meeting scheduled for August 27, 2026
Financial Performance
Revenue Growth by Segment
Retail Assets grew 21% YoY to INR 76,616 Cr in FY25, with Wheels growing 27% to INR 36,623 Cr and Mortgage-Backed Loans growing 16% to INR 38,097 Cr. Commercial Banking assets grew 22% YoY, now representing 21% of the total loan portfolio. Unsecured segments (MFI and Credit Cards) degrew by 23% YoY as the bank calibrated its risk exposure.
Geographic Revenue Split
The bank is expanding to a pan-India distribution model, with a strategic focus on strengthening its presence in South India following the Fincare merger. Specific regional percentage splits are not disclosed in available documents.
Profitability Margins
Net Interest Margin (NIM) improved to 5.5% in Q2 FY26 from 5.4% in Q1 FY26, driven by a decline in cost of funds. However, Return on Total Assets (ROTA) moderated to 1.41% in H1 FY26 compared to 1.54% in FY24 due to elevated credit costs and interest income reversals in the unsecured book.
EBITDA Margin
Pre-Provision Operating Profit (PPoP) grew 86% YoY to INR 4,581 Cr in FY25. For H1 FY26, PPoP growth stood at 21% YoY, supported by a 33% increase in other income and disciplined operational expense growth of 8%.
Capital Expenditure
The bank is investing in manpower and distribution expansion to achieve pan-India reach. While specific total INR Cr for future Capex is not disclosed, the bank increased its ESOP awards by 75% YoY for talent management and continues to invest in technology for its universal banking transition.
Credit Rating & Borrowing
CareEdge Ratings maintains a positive outlook. The bank raised INR 770 Cr through Tier-II bonds in FY25. Capital Adequacy Ratio (CRAR) stood at 18.78% as of September 30, 2025, well above the 15% regulatory requirement. Cost of funds saw a sharp decline in Q2 FY26, aiding margin expansion.
Operational Drivers
Raw Materials
Not applicable as AUBANK is a financial services provider; however, its primary 'input' is Deposits, which grew 21% YoY to INR 1,32,509 Cr as of September 2025.
Capacity Expansion
The bank is transitioning to a Universal Bank following RBI's in-principle approval on August 7, 2025, with an 18-month transition timeline. This will remove the INR 25 lakh ticket size gap for commercial banking and allow for higher exposure limits.
Raw Material Costs
Interest expended (cost of deposits/borrowings) rose 24% YoY to INR 4,701 Cr in H1 FY26. The bank targets a cost-to-income ratio below 60% and has successfully reduced opex-to-total assets to 4% in H1 FY26 from 4.6% in H1 FY25.
Manufacturing Efficiency
Not applicable; however, operational efficiency is reflected in the 8% YoY growth in operating expenses despite a 20% QoQ increase in disbursements.
Logistics & Distribution
Distribution is being expanded pan-India; the bank is leveraging its 'AU 0101' digital app for 100% digital sourcing of insurance and other third-party products.
Strategic Growth
Expected Growth Rate
20-25%
Growth Strategy
Growth will be achieved through the transition to a Universal Banking license, which will lower the cost of funds and allow for higher exposure limits. The bank is also scaling its Gold Loan business (currently INR 2,300 Cr) and cross-selling forex services via its AD-1 business and the AU 0101 digital platform.
Products & Services
Wheels loans, Mortgage-Backed Loans (MBL), Home Loans, Business Banking, Agri Banking, Gold Loans, Credit Cards, Personal Loans, Microfinance (MFI), and Insurance (Life, Health, Motor).
Brand Portfolio
AU Small Finance Bank, AU 0101 App, AU BIMA, AU ivy, AU Eternity.
New Products/Services
The bank launched AD-1 business for foreign exchange services and is scaling its 'AU BIMA' digital insurance platform, which saw 37% YoY growth in insurance business to INR 1,161 Cr in FY25.
Market Expansion
Targeting pan-India distribution with a specific focus on South India following the Fincare merger and upgrading branches to support universal banking services.
Market Share & Ranking
The bank's deposit growth of 21% is nearly 2x the industry system growth rate, and loan growth of 17% is 1.7x the system credit growth.
Strategic Alliances
The bank has received approval to increase the foreign investment limit from 49% to 74% as of December 9, 2025, to attract global capital.
External Factors
Industry Trends
The Indian banking sector is seeing a narrowing gap between credit and deposit growth. AUBANK is positioning itself for the 'Universal Banking' shift to access broader deposit avenues and relaxed regulatory constraints.
Competitive Landscape
Faces intense competition for deposits from both Government-owned banks and other private universal banks.
Competitive Moat
Moat is built on a 30-year legacy in retail secured assets (Wheels/MSME) and a strong digital-first distribution (AU 0101). The transition to a Universal Bank will further strengthen this by lowering the cost of funds.
Macro Economic Sensitivity
Highly sensitive to interest rate cycles; RBI rate cuts of 100 bps between February and June 2025 are expected to continue aiding NIM expansion as the deposit book reprices.
Consumer Behavior
Increasing demand for digital-first banking and insurance, addressed by the AU 0101 app which facilitates seamless policy sourcing and forex services.
Geopolitical Risks
Not disclosed as a primary risk, though macroeconomic stability is cited as a factor for rural growth.
Regulatory & Governance
Industry Regulations
The bank must comply with RBI's 15% CRAR and 7.5% Tier-I CAR requirements. It is currently undergoing an 18-month transition to comply with Universal Banking norms, including the transfer of promoter shares to a Non-Operative Financial Holding Company (NOFHC).
Environmental Compliance
The bank has a 100% green loan portfolio deployment toward sustainable sectors like solar power and Electric Vehicles (EVs).
Taxation Policy Impact
Tax expenses for FY25 were INR 682 Cr, representing an effective tax rate of approximately 24.5% on Profit Before Tax of INR 2,788 Cr.
Legal Contingencies
The bank carried INR 17 Cr of contingency provisions and INR 41 Cr of floating provisions as of March 2025. Exceptional items of INR 57 Cr were recorded for merger-related stamp duty and transaction expenses.
Risk Analysis
Key Uncertainties
Asset quality in the microfinance segment remains a key monitorable, with the GNPA ratio increasing to 1.98% in Q2 FY26 from 1.67% in March 2025.
Geographic Concentration Risk
Historically concentrated in North/West India, now diversifying into South India via the Fincare merger to mitigate regional economic risks.
Third Party Dependencies
The bank relies on insurance partners for its bancassurance business, which grew 37% YoY to INR 1,161 Cr.
Technology Obsolescence Risk
The bank is mitigating tech risk by migrating to a new technology platform by the end of 2025 to support its universal banking scale.
Credit & Counterparty Risk
The bank maintains a healthy 92% secured book. Unsecured exposure is being capped at 10% to limit counterparty credit risk.
