GNPA ratio improved by 42 bps YoY to 1.99%; NNPA ratio improved by 7 bps to 0.81%; PCR at 83% including technical write-off
FinTech BizNews Service
Mumbai, 24 October, 2026: AU Small Finance Bank has announced its Q2 FY27 & H1’FY27 Financial Results.
Q2’FY27: Core PPoP grew 31% YoY to Rs1,480 cr and PAT grew 53% YoY to Rs858 cr
RoA stood at 1.7% and RoE at 16.1%
H1’FY27: Core PPoP grew 36% YoY to Rs2,906 cr and PAT grew 45% YoY to Rs1,654 cr
RoA stood at 1.7% and RoE at 15.8%
Key financial highlights for Q2’FY27
o Net Interest Margin increased by 33 bps YoY to 5.8% in Q2’FY27 from 5.5% in Q2’FY26
o Cost of Funds (CoF) declined by 43 bps YoY to 6.41% in Q2’FY27 from 6.83% in Q2’FY26
o Net Interest Income (NII) grew by 32% YoY to Rs2,820 cr compared to Rs2,144 cr in Q2’FY26
o Core other income grew by 16% YoY to Rs736 cr compared to Rs634 cr in Q2’FY26 driven by fees from credit card and transaction banking
o Credit cost (Including guarantee premium) declined by 45 bps YoY from 1.2% to 0.8%
o PAT grew 53% YoY to Rs858 cr, with annualised RoA of 1.7% and RoE of 16.1%
o Deposit book stands at Rs1,70,460 cr registering YoY growth of 28.6% which was nearly 1.6x of the system growth
o CASA deposits stand at Rs50,289 cr, up 29% YoY and 11% QoQ; CASA ratio at 29.5%
o Gross loan portfolio (GLP) stands at Rs1,53,769 cr, registering a YoY growth of 25.1% which was nearly 1.3x of the system growth; Gross advances at Rs1,50,291 cr, up 27.9% YoY
o GNPA ratio improved by 42 bps YoY to 1.99%; NNPA ratio improved by 7 bps to 0.81%; PCR at 83% including technical write-off
o Strengthened leadership team further with the appointment of Mr. Anil Agarwal as Senior Executive Group Head – Commercial & Institutional Banking. He will lead Commercial and Institutional Banking, encompassing lending, transaction banking and funding solutions across key institutional and commercial segments
o Mr. Amol Padhye formally assumed role of Chief Risk Officer, and will help to further strengthen enterprise-wide risk governance, regulatory readiness and risk management frameworks
o During the quarter, bank added net 183 touchpoints including 45 new liability branches and 100+ asset centres across the country
o Bank now has total 128 lac+ customers; serves them through a total 3,103 touchpoints across 21 states and 4 UTs with total strength of ~61K employees
ICRA Ratings upgraded Bank’s long-term credit rating outlook to Positive from Stable, while re-affirming our long-term rating at AA
Commenting on the performance, Mr. Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank said, “Even as the global environment navigates heightened geopolitical and macroeconomic uncertainties, India continues to stand out for its resilience and sustained domestic momentum. This reinforces my conviction in the strength of India’s economic fundamentals and the immense opportunity that its long-term growth journey presents. Equally, I draw confidence from the strength we are building at AU. Strong institutions are built not merely for favourable conditions, but to navigate cycles while remaining firmly focused on the long term.
This quarter’s performance is a reflection of the institution we are steadily building, one that combines growth with profitability, and ambition with prudence. The balanced growth of our franchise, improving profitability and stable asset quality reinforce our confidence that the foundations for sustained, long-term performance are firmly in place.
As we scale, our priorities remain clear: protect our customers’ interests, strengthen governance and continue investing in the capabilities that will shape our future. We remain watchful of the evolving environment, but the strength of our balance sheet and franchise gives us confidence to navigate uncertainties, sustain our momentum and continue building AU as a resilient, sustainable and trusted institution.”
