AU Small Finance Bank has announced its financial results for Q4FY26, showcasing a robust performance with significant growth in profits, deposits, and loans.
The bank's strategic initiatives and technological advancements have contributed to its strong financial standing.
AU Small Finance Bank reported a 65% year-on-year (YoY) increase in Profit After Tax (PAT) for Q4FY26, reaching ₹832 crore.
The bank's Net Interest Margin (NIM) expanded by 24 basis points to 5.96%, while the Cost of Funds (CoF) declined by 12 basis points quarter-on-quarter (QoQ) to 6.49%.
Net Interest Income (NII) grew by 23% YoY and 10% QoQ to ₹2,582 crore.
Core other income increased by 14% YoY and 7% QoQ to ₹748 crore. Provisions for Q4FY26 were down 58% YoY and 19% QoQ to ₹269 crore.
The bank's Return on Assets (RoA) for Q4FY26 was 1.8% and Return on Equity (RoE) stood at 17%.
AU Small Finance Bank's asset quality ratios improved sequentially, with the Gross Non-Performing Assets (GNPA) ratio at 2.03% as of March 2026, down from 2.30% in December 2025.
The Net Non-Performing Assets (NNPA) ratio was 0.74% at March 2026, compared to 0.88% at December 2025.
Total deposits grew by 23% YoY and 10% QoQ to ₹1,52,661 crore, while the Gross Loan Portfolio increased by 21% YoY and 8% QoQ to ₹1,40,327 crore.
The bank's secured businesses, including retail and commercial, grew by 23% YoY and 7% QoQ.
AU Small Finance Bank has made significant strides in embedding artificial intelligence (AI) into its core operations.
The bank launched its first AI-native Loan Origination System for gold loans, marking a shift towards reimagining banking processes.
The bank is also deploying AI and machine learning across credit underwriting, fraud decisioning, collections, and customer service.
Read More: IDFC First Bank Q4 FY26 Results: Net Profit Up 4.9% YoY to ₹319 Crore in Q4 FY26 as NII Jumps 15.7%!
The Reserve Bank of India (RBI) approved the reappointment of Mr. Sanjay Agarwal as Managing Director and CEO for a further period of 3 years, effective April 19, 2026.
Additionally, the bank has filed for a final license to transition to a Universal Bank, following changes in regulatory stipulations.
As of April 27, 2026, at 3:30 PM, AU Small Finance Bank share price on NSE was closed at ₹1,043.00 down by 2.13% from the previous closing price.
AU Small Finance Bank's strong performance in Q4FY26 reflects its strategic focus on growth, technological integration, and improved asset quality. The bank's initiatives in AI and leadership developments position it well for future success.
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Published on: Apr 28, 2026, 9:01 AM IST
Team Angel One
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