AU Small Finance Bank will participate in the Goldman Sachs Asia Leaders Conference 2026, scheduled for August 31 and September 1, 2026. The bank has announced this engagement to update analysts and institutional investors on its performance and outlook.

Event Details

The meet will take place physically in Hong Kong. It is structured as both individual and group sessions, allowing for detailed discussions with market participants. This disclosure aligns with the bank’s ongoing communication strategy with its investor base.

Regulatory Compliance

The disclosure was made under Regulation 30 read with clause 15 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In compliance with Regulation 46 of the Listing Regulations, the information is also hosted on the bank's website.

Manmohan Parnami, Company Secretary and Compliance Officer, signed the communication dated August 25, 2026.

AU Small Finance Bank reported a 37% year-on-year increase in net profit after tax (PAT) to ₹796 crore for the quarter ended June 30, 2026, driven by robust growth in net interest income (NII) and improved asset quality. The bank’s NII surged 32% YoY to ₹2,695 crore, while the net interest margin (NIM) expanded by 47 basis points to 5.9%, reflecting effective yield management despite a 60 bps decline in cost of funds to 6.48%. Total income rose 19% YoY to ₹3,385 crore, underscoring the bank’s ability to sustain profitability amidst tighter liquidity conditions. This performance positions the bank strongly ahead of its 31st Annual General Meeting (AGM), scheduled for September 5, 2026.

The Board of Directors approved the unaudited financial results on July 25, 2026, under Regulation 30 and Regulation 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Joint statutory auditors M S K A & Associates LLP and Mukund M. Chitale & Co. issued an unmodified limited review report. In a significant leadership move, the Board elevated Yogesh Jain from Chief Operating Officer to Deputy CEO effective July 25, 2026, to strengthen management bandwidth. Additionally, Yogesh Soni was categorized as Senior Management Personnel (SMP), while Bhaskar Karkera, Vaman Ramesh Kamat, Vivek Rathi, Dhavan Natvarlal Shah, and Ankur Tripathi were re-categorized from SMP to non-SMP. Deepak Jain will be re-categorized upon completing his term as Chief Risk Officer on September 1, 2026. The record date for determining members eligible for the final dividend is Friday, July 31, 2026.

Key Financial Metrics

The following table summarizes the bank’s key financial performance for the quarter:

Balance Sheet Growth

Deposits grew 24% YoY to ₹1,57,727 crore, with CASA deposits increasing 22% YoY to ₹45,399 crore, maintaining a stable CASA ratio of 29%. The gross loan portfolio expanded 23% YoY to ₹1,44,250 crore, supported by a 42% YoY rise in disbursements. Secured businesses (Retail + Commercial) led this growth with a 25% YoY increase, while unsecured businesses grew 11% YoY. The credit deposit ratio stood at 80%, excluding advances created from refinance by Development Finance Institutions. During the quarter, the bank allotted 7,04,837 equity shares pursuant to employee stock option exercises.

Asset Quality and Capital

Asset quality showed a mixed picture — while annual trends improved, sequential metrics reflected a marginal uptick. The gross NPA (GNPA) ratio stood at 2.10% in Q1FY27, compared to 2.47% in Q1FY26 on a YoY basis, but edged up from 2.03% on a quarter-on-quarter basis. Similarly, the net NPA (NNPA) ratio improved to 0.76% from 0.88% YoY, but rose marginally from 0.74% QoQ. Slippages declined 22% YoY to ₹798 crore, and provisions fell 30% YoY to ₹371 crore. The capital adequacy ratio remained robust at 18.9%, with Tier I capital at 17.1%.

Segment Performance

Retail banking remained the primary revenue driver, contributing ₹4,45,030 lakh to segment revenue, up from ₹3,65,189 lakh in Q1FY26. Wholesale banking revenue rose to ₹64,710 lakh from ₹47,950 lakh YoY. Treasury segment revenue decreased to ₹80,105 lakh from ₹98,024 lakh, reflecting market headwinds. Retail banking also delivered the highest segment result at ₹66,425 lakh, compared to ₹27,020 lakh in the same period last year.

What the Numbers Show

The divergence between the 32% surge in NII and the 26% rise in operating expenses highlights improving operating leverage, contributing to a 41% YoY jump in core pre-provisioning operating profit (excluding treasury income). While total other income declined 15% YoY due to treasury headwinds, core other income grew 33% YoY, indicating stronger fee-based revenue streams. The simultaneous improvement in NIM and decline in cost of funds suggests successful liability management, allowing the bank to pass on lower funding costs partially to borrowers while retaining margin expansion. The marginal sequential rise in GNPA and NNPA ratios, however, warrants continued monitoring of credit quality trends.