AU Small Finance Bank Q1FY27 Results: Net Profit Rises 37% to ₹796 Crore

AU Small Finance Bank Ltd delivered double-digit growth in earnings during the first quarter of FY27, with higher interest income contributing to improved profitability despite a slight sequential deterioration in asset quality. 

For the quarter ended June 30, 2026, the bank reported a 37% year-on-year increase in net profit to ₹796 crore, while net interest income (NII) grew 32% to ₹2,696 crore. 

Interest Income Drives Quarterly Performance 

The bank's NII, which represents the difference between interest earned and interest paid, increased from ₹2,045 crore in the corresponding quarter last year to ₹2,696 crore. 

Operating profit also moved higher, rising 9.4% year-on-year to ₹1,435 crore, compared with ₹1,312 crore a year earlier. 

Lower Provisions Support Earnings 

The bank set aside ₹371 crore as provisions during the quarter, lower than ₹533 crore reported in the corresponding period last year. 

However, provisions increased from ₹269 crore recorded in the preceding quarter, reflecting a sequential rise. 

Asset Quality Sees Sequential Movement 

On a quarter-on-quarter basis, the bank's asset quality weakened marginally. 

Gross non-performing assets (GNPA) increased to 2.10% from 2.03%, while net non-performing assets (NNPA) edged up to 0.76% from 0.74% in the previous quarter. 

Read More: Bank of India Q1 FY27 Results: Net Profit Rises 36% to ₹3,068 Crore, Asset Quality Improves 

AU Small Finance Bank Share Price Performance  

As of 24 July 2026, AU Small Finance Bank share price closed at ₹1,013.10 per share, reflecting a surge of 3.51% from the previous trading session. 

Conclusion 

AU Small Finance Bank reported higher profit, net interest income and operating profit in Q1FY27, while year-on-year provisions declined. During the quarter, provisions increased sequentially and both gross and net non-performing asset ratios moved up from the preceding quarter. 

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