AU SFB Q1 results 2026: Private sector lender AU Small Finance Bank posted its earnings for the quarter ended June 2026 (Q1FY27) on Saturday, 25 July. It reported a strong performance for the first quarter, with net profit rising 37% year-on-year (YoY), supported by healthy growth in net interest income (NII) and a sharp decline in provisions.
The lender posted a net profit of ₹796 crore for the quarter, compared with ₹581 crore in the corresponding period last year.
Net interest income (NII), the difference between interest earned and interest paid, increased 32% YoY to ₹2,696 crore from ₹2,045 crore a year ago, reflecting robust growth in the bank’s core lending business.
Operating profit also registered growth during the quarter, rising 9.4% YoY to ₹1,435 crore from ₹1,312 crore in the year-ago period.
Asset quality and provisions
Asset quality remained broadly stable on a sequential basis, although there was a marginal uptick in non-performing assets. Gross non-performing assets (GNPA) stood at 2.10% at the end of the June quarter, compared with 2.03% in the previous quarter. Net non-performing assets (NNPA) came in at 0.76%, slightly higher than 0.74% reported in the March quarter.
The bank also reported a significant reduction in credit costs. Provisions declined to ₹371 crore during the quarter from ₹533 crore in the corresponding quarter last year. Provisions declined 30% YoY,includes additional one-time provision of ₹23 cr from
further strengthening of provisioning policy for MFI, PL/BL, Two-wheeler and EEFI businesses
However, provisions were higher than the ₹269 crore reported in the preceding quarter.
The improvement in profitability was driven by strong growth in net interest income and lower provisions, even as the bank reported a marginal sequential increase in gross and net bad loan ratios.
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