AU Small Finance Bank Q4 profit jumps 65% on lower provisions

AU Small Finance Bank reported a 65% rise in Q4 net profit driven by sharply lower provisions. Loan and deposit growth remained strong, asset quality improved, and margins expanded, though operating profit growth was modest due to higher expenses ...

By Atmadip Ray, ET Bureau | Apr 27, 2026, 06.30 PM IST

AU Small Finance Bank posted strong profit growth aided by lower provisions, with improved margins and asset quality, even as higher costs capped operating profit expansion.

Lower provisions helped AU Small Finance Bank report a 65% jump in net profit for the fourth quarter at Rs 832 crore as compared with Rs 504 crore in the year ago period.

Provisions were down 58% year-on-year at Rs 269 crore.

The net profit for FY26 was up 25% at Rs 2,641 crore

The bank's operating profit for the quarter meanwhile rose a modest 5% at Rs 1352 crore against Rs 1292 crore earlier, due to rise in operating expenses including employee cost.

Its net interest margin (NIM) for the quarter expanded by 24 basis points to 5.96% from what it was in the preceding three-month period.

Net interest income grew by 23% year-on-year at Rs 2,582 crore while other income stood 4% lower at Rs 731 crore due to Rs 17 crore treasury loss.

The bank's gross loan portfolio grew by 21% year-on-year to Rs 1.40 crore while its gross non-performing assets ratio declined sequentially to 2.03% at the end of March from 2.30% three months prior. Net NPA ratio was at 0.74% as compared with 0.88% for the same time period.

Total deposits grew by 23% to 1.53 lakh crore.

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