AU Small Finance Bank Share Price in Focus; Strengthens Leadership as Q3 Profit Rises 26%

AU Small Finance Bank has outlined leadership succession plans and board enhancements as part of its preparation to operate as a universal bank. Alongside these governance updates, the lender reported improved quarterly earnings, supported by lower provisioning and steady business growth.

The developments reflect the bank’s focus on maintaining operational continuity while strengthening oversight and organisational depth.

Leadership Continuity and Succession Planning

The bank has proposed continuing key senior executives as part of its long-term succession roadmap. Deputy Chief Executive Officer Uttam Tibrewal is set to remain in his current role after completing his tenure as whole-time director in April 2026, with responsibility for major business verticals including retail assets and liabilities.

Chief Credit Officer Vivek Tripathi is proposed to be appointed as an executive director. Both appointments remain subject to regulatory clearance. The bank stated that these steps are intended to ensure leadership stability and flexibility for future organisational requirements.

Board Expansion and Governance Updates

To reinforce governance practices, AU Small Finance Bank has added three independent directors to its board. Malini Thadani has been re-appointed as non-executive independent director for a second three-year term. New independent board members include N S Venkatesh, Satyajit Dwivedi and Phani Shankar.

These appointments come as the bank progresses towards becoming a universal bank, after receiving in-principle approval for a universal banking licence last year, along with an 18-month transition timeline.

AU Small Finance Bank Q3 FY26 Financial Performance

For the December quarter, the bank recorded a 26% year-on-year rise in net profit to ₹668 crore. Lower provisioning costs contributed to the improvement, with provisions declining to ₹331 crore compared to ₹502 crore in the same period last year.

Pre-provision operating profit remained largely unchanged at ₹1,215 crore. Net interest income increased 16% to ₹2,341 crore, while other income grew 17% to ₹724 crore. Net interest margin rose by 25 basis points quarter-on-quarter to 5.7%.

Operating expenses increased 27% to ₹1,830 crore, driven by higher business volumes, investments in manpower and distribution, and marketing expenditure. This rise in costs moderated operating profit growth.

AU Small Finance Bank Asset Quality and Loan Growth

The bank’s gross loan portfolio expanded 19.3% year-on-year to ₹1.30 lakh crore by the end of December. Asset quality showed modest improvement, with the gross non-performing assets ratio easing to 2.30% from 2.41% in the previous quarter.

These trends indicate steady credit expansion alongside stable risk metrics.

Read More: RRB amalgamation: FinMin to hold review meeting with CEOs of PSU banks on January 30.

Conclusion

AU Small Finance Bank’s recent leadership announcements and board appointments underline its focus on continuity and governance as it advances towards universal bank status.

Going forward, execution of succession plans, cost management and asset quality trends are likely to remain key areas of attention for stakeholders.

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