Join us – for Quick Banking updatesJaipur/Mumbai, July 19, 2025 — AU Small Finance Bank (AU SFB) reported a 16% year-on-year (YoY) increase in net profit at ₹581 crore for the quarter ended June 30, 2025 (Q1FY26), backed by robust income growth, disciplined expense management, and a 31% surge in deposits.
Despite a seasonally soft quarter and a challenging macroeconomic backdrop, AU delivered a consistent performance across business segments, maintaining strong profitability and healthy asset quality.
🔍 Key Financial Highlights:
Net Profit (PAT): ₹581 Cr (↑ 16% YoY)
Operating Profit (PPoP): ₹1,312 Cr (↑ 38% YoY)
Net Interest Income (NII): ₹2,045 Cr (↑ 6% YoY)
Other Income: ₹811 Cr (↑ 59% YoY)
Return on Assets (RoA): 1.5% | Return on Equity (RoE): 13.3%
Cost-to-Income Ratio: Improved to 54.0% from 60.8%
Earnings per Share (EPS): ₹7.8 (↑ 15% YoY)
💰 Balance Sheet & Business Growth:
Deposits: ₹1.28 lakh Cr (↑ 31% YoY)
CASA Deposits: ₹37,241 Cr (↑ 16% YoY), CASA ratio at 29%
Gross Loan Portfolio (GLP): ₹1.18 lakh Cr (↑ 18% YoY)
Secured Lending: ↑ 22% | Unsecured Lending: ↓ 23%
CD Ratio: 79% (excluding DFI refinance)
Shareholder’s Funds: ₹17,800 Cr (↑ 15% YoY)
📉 Asset Quality & Capital:
Gross NPA: 2.47% | Net NPA: 0.88%
Provision Coverage Ratio (PCR): 83%
Capital Adequacy Ratio (CRAR): 20% | Tier-I Capital: 18.2%
Net Credit Cost: 0.34% of average assets
🏆 Strategic & Digital Highlights:
Acquired a new Mumbai office in BKC for business consolidation
Added two new independent directors, strengthening governance
Key partnerships launched:
IFC for climate risk advisory
LIC for inclusive insurance coverage
MakeMyTrip for NRI airport transfers
Rolled out premium concierge services for affluent clients and the AU House of Growth initiative for employee welfare
🌱 CSR & Recognition:
AU Ignite: Skill development for 30,000+ youth
AU Bano Champion: Rural sports coaching in 50+ locations
AU Kartavya: Health camps across 12 states benefiting 70,000+ people
Awarded Top 25 BFSI Workplace, IBA CISO Award, PFRDA APY Award, and more
📌 Summary:
AU Small Finance Bank enters its 30th year with strong momentum. Robust deposit and loan growth, margin discipline, and solid asset quality in Q1FY26 reinforce its vision of being a “Forever Bank.” While geopolitical headwinds and uneven economic recovery persist, AU’s digital-first, customer-focused strategy positions it for sustained long-term growth.
