AU Small Finance Bank Reports Strong Q4'FY26 Results; PAT Jumps 65% YoY

AU Small Finance Bank Reports Strong Q4'FY26 Results; PAT Jumps 65% YoY​

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 overall performance, with Profit After Tax (PAT) increasing by 65% year over year (YoY) to ₹832 crore for Q4'FY26, contributing to a 25% YoY profit growth to ₹2,641 crore for the full fiscal year (FY26).

The Bank highlighted improvements in asset quality and core metrics, noting a Net Interest Margin (NIM) expansion and substantial growth in deposit and loan portfolios.

Key Financial Highlights for Q4'FY26​

The Bank's performance metrics for the fourth quarter showed significant year-over-year growth.


The Bank's key ratios also improved sequentially: the Gross Non-Performing Asset (GNPA) ratio stood at 2.03% as of March 2026, down from 2.30% in December 2025.

Deposit and Loan Portfolio Growth​

Growth continued across the Bank's core revenue segments:

• Deposits: Total deposits grew by 23% YoY and 10% QoQ, reaching ₹1,52,661 crore. CASA deposits saw a 20% YoY growth, reaching ₹43,357 crore.
• Advances: The gross loan portfolio grew by 21% YoY and 8% QoQ, reaching ₹1,40,327 crore. Secured businesses (Retail + Commercial) specifically saw a 23% YoY growth.

For the full year FY26, the net profit was ₹2,641 crore, marking a 25% YoY increase from ₹2,106 crore in FY25. During FY26, the Bank added approximately 334 net touchpoints, including 78 new liability branches.

Strategic and Technological Advances​

AU Small Finance Bank emphasized its commitment to technology-driven operations, expanding its footprint and capabilities.

The Bank continues to embed Artificial Intelligence (AI) across its operating model. Key technological advancements include:

• Launching its first AI-native Loan Origination System for Gold loans, built on an engineered, deterministic, rule-driven Agentic AI platform.
• Expanding its distribution by adding a net of 64 physical touchpoints during Q4'FY26, including 13 new deposit branches, bringing the total touchpoints to 2,790.
• AI was deployed across credit underwriting, fraud decisioning, and collections, resulting in approximately 60% of AML alerts being reviewed and resolved via AI-based models.

Leadership and Corporate Milestones​

The Board of Directors approved the reappointment of Mr. Sanjay Agarwal as MD & CEO for a further period of three years, effective April 19, 2026.

Commenting on the performance, Mr. Sanjay Agarwal stated that FY26 represents a deeply meaningful milestone as the Bank approaches its tenth year of operation. He highlighted that the Bank has strengthened its franchise, embedded technology, and invested in governance and leadership, signalling its intent to fundamentally reimagine banking.

Financial Status​

The Bank maintains a strong financial standing:

• Capital Adequacy Ratio: As of March 31, 2026, the ratio stood at 18.7%, with the Tier I capital adequacy ratio at 16.9%.
• Liquidity: The average Liquidity Coverage Ratio (LCR) for Q4'FY26 was 119%.
• Credit Cost: Credit cost for FY26 improved to 0.96% of average assets, compared to 1.3% for FY25.

The Bank also announced a dividend of ₹1/- per share for FY26.

AUBANK Stock Price Movement​

Today, AU Small Finance Bank Limited shares shed 2.36% of their value, closing at ₹1043. Trading activity saw the equity settle on a total volume of 1.93 million shares today.