AU Small Finance Bank Reaffirms Credit Ratings
CRISIL Ratings has reaffirmed its 'Crisil AA+/Crisil AA/Stable/Crisil A1+' ratings on the outstanding debt instruments of AU Small Finance Bank Limited (AU SFB).The reaffirmation reflects AU SFB’s demonstrated ability to meet expectations around improvements in asset quality and earnings profile, and sustenance in the bank’s overall capitalization and deposit mobilization. The ratings are partially offset by a lower share of current and savings account deposits compared to peers.
As of December 31, 2025, the bank’s networth stood at Rs 19,085 crore. The bank’s reported overall and tier 1 capital adequacy ratios (CAR) were 19% and 17.1%, respectively, as of December 31, 2025.
The bank’s advances were Rs 129,898 crore on December 31, 2025, marking an annualized growth of ~16% compared to Rs 115,704 crore on March 31, 2025, marking year-on-year growth of ~20%. Retail assets comprise over 78% of their advances, with vehicle financing segment comprising around 34% of gross loan portfolio alongside Micro Business Loans contributing around 26% of gross loan portfolio as of December 31, 2025.
Asset quality metrics remain controlled, with gross non-performing assets (GNPA) and net non-performing assets (NNPA) at 2.3% and 0.7% respectively as on March 31, 2025. These trends remained stable at 2.3% and 0.9%, respectively, as of December 31, 2025.
In the nine months ended fiscal 2026, the bank reported a profit after tax of Rs 1,809 crore with a return on assets (RoA) of 1.5%, compared to Rs 2,106 crore in fiscal 2025 (RoA of 1.6%).
The bank’s deposit base stood at Rs 138,415 crore on December 31, 2025. The share of CASA and retail deposits was 28.9% and 60.4% respectively.
On August 7, 2025, AU SFB received an in-principle approval from the Reserve Bank of India to become a universal bank.
On February 18, 2026, the state government of Haryana de-empaneled AU SFB for government business. The bank maintains a comfortable liquidity position.
Rating Action Table
| Instrument | Rating |
|---|---|
| Rs. 1100 Crore Certificate of Deposits | Crisil A1+ |
| Tier II Bond Aggregating Rs. 500 Crore | Crisil AA/Stable |
| Rs. 40000 Crore Fixed Deposits | Crisil AA+/Stable |
Source:
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.