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Private lender AU Small Finance Bank on Saturday reported a 37% year-on-year rise in net profit to Rs 796 crore in Q1, compared with Rs 581 crore in the year-ago period.
Alongside Q1 earnings, the lender announced it has fixed Friday, July 31, 2026 as the record date to determine the shareholders eligible to receive the final dividend, if declared at the upcoming Annual General Meeting.
The bank’s net interest income (NII) increased 31.8% year on year to Rs 2,695.5 crore from Rs 2,044.7 crore, AU Small Finance Bank said in a regulatory filing.
On the asset quality front, gross NPA stood at 2.10% in Q1, up from 2.03% in the previous quarter. Net NPA also rose marginally to 0.76% from 0.74% quarter on quarter. On a YTD basis, gross NPA declined from 2.47% posted in the corresponding quarter of the previous year. Net NPA also declined from 0.88% in the year-ago period.
Its provisions, or funds set aside by the bank to cover potential losses from bad loans and other risks, declined to Rs 371.5 crore from Rs 533.3 crore in the year-ago period.
AU Small Finance Bank reported a strong operating performance, with pre-provisioning operating profit (PPoP) rising 9% year on year to Rs 1,435 crore. Core PPoP, excluding treasury income, grew 41% YoY to Rs 1,426 crore.
Total deposits increased 24% YoY and 3% QoQ to Rs 1,57,727 crore. CASA deposits, comprising current and savings account deposits, grew 22% YoY and 5% QoQ, taking the CASA ratio to 29%.
The bank's gross loan portfolio rose 23% YoY and 3% QoQ to Rs 1,44,250 crore, while disbursements increased around 42% YoY. Secured businesses, including retail and commercial loans, grew 25% YoY and 4% QoQ, while unsecured businesses expanded 11% YoY and 5% QoQ.
Loan slippages declined 22% YoY to Rs 798 crore. Gross NPA stood at 2.10%, while net NPA was at 0.76%. Cost-to-assets, excluding the CGFMU premium, stood at 4.0%, compared with 3.9% in Q1 FY26. Annualised credit cost, including the CGFMU premium, improved to 0.8% from 1.4% in Q1 FY26.
Management changes
AU Small Finance Bank has elevated Yogesh Jain, currently serving as Chief Operating Officer, to Deputy CEO, effective July 25, 2026, following the recommendation of the Nomination and Remuneration Committee.
The elevation is aimed at strengthening the bank's leadership structure and management bandwidth in line with the growing scale of its operations. Jain will continue to report to the MD & CEO and remain classified as a Senior Management Personnel (SMP) of the bank.
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