AU Small Finance Bank has disclosed a revised investor presentation for the group meeting with analysts and institutional investors held on Thursday, September 24, 2026. The event, organized by ICICI Securities in Mumbai, served as a platform to outline the bank's growth strategy and technological roadmap.

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. Manmohan Parnami, Company Secretary and Compliance Officer, signed the filing dated September 24, 2026. The presentation is also available on the bank's website in compliance with Regulation 46 of the Listing Regulations.

Meeting Details

Strategic Highlights from Presentation

The investor presentation emphasized AU Small Finance Bank's transition towards a universal banking model, citing an 'in-principle' approval from the RBI. Key strategic pillars include scaling the deposit franchise, expanding distribution in newer states, and leveraging technology for operational efficiency. The bank highlighted its scalable, retail-led business model with execution track record, noting that deposits and advances grew at 45% and 34% CAGR respectively over the last nine years.

Financial Performance and Growth Metrics

The bank reported robust growth across key financial metrics over the last nine years (FY18-FY26). Deposits grew at a 45% CAGR, while the gross loan portfolio expanded at a 31% CAGR. Net Interest Income (NII) recorded a 33% CAGR during the same period.

Profit After Tax (PAT) demonstrated a 32% CAGR over the nine-year period. Return on Assets (RoA) averaged approximately 1.6%, while Return on Equity (RoE) averaged 14.4%.

Asset Quality and Liability Franchise

The bank maintained stable asset quality through various macroeconomic cycles. Gross Non-Performing Assets (GNPA) stood at 2.0% in FY26, while Net NPA was at 0.7%. Credit costs averaged ~0.7 bps over the nine-year period. The portfolio remains largely secured, with over 90% of assets secured, anchoring asset quality and returns.

On the liability side, the bank focused on granular deposits. The CASA ratio improved significantly from 18% in FY19 to 28% in FY26. The Cost of Funds decreased from 8.4% in FY18 to 6.7% in FY26, reflecting improved funding efficiency.

Technology and Digital Strategy

AU Small Finance Bank outlined its "Run, Build, Transform, Secure" technology framework. The bank has invested over ₹3,000 crore cumulatively in technology, focusing on:

• Core Banking Modernization: Migration to next-gen CBS with microservices and real-time processing.
• Agentic AI: Deployment of AI agents for credit, fraud detection, and customer operations.
• Digital Channels: The AU 0101 Super App serves as the primary retail channel, with 18.4 lakh monthly active users and a 44% DAU/MAU stickiness rate.
• Security: Implementation of zero-trust architecture and AI-powered threat defense.

What the Numbers Show

The presentation reveals a divergence between rapid top-line expansion and margin stability. While deposits grew at a steep 45% CAGR, the NII margin remained relatively stable between 5.0% and 5.8% over the last decade. This suggests that the bank's growth has been volume-driven rather than yield-driven, supported by a consistent improvement in the CASA mix which lowered the cost of funds from 8.4% to 6.7%. The sustained RoA of ~1.6% despite aggressive scaling indicates that operating leverage is offsetting the costs of expansion into newer geographies and technologies.

AU Small Finance Bank has appointed Anil Agarwal as Senior Executive Group Head - Commercial & Institutional Banking. The board approved the move on September 14, 2026, categorizing him as Senior Management Personnel (SMP).

The appointment follows a recommendation from the Nomination and Remuneration Committee. Agarwal’s tenure begins immediately on September 14, 2026.

Leadership Profile

Agarwal is a Rank Holder Chartered Accountant and Cost & Management Accountant. He holds a bachelor’s degree in commerce from Lucknow University, where he was a Silver Medalist.

He brings nearly three decades of experience across commercial and institutional banking, transaction banking, government business, corporate banking, financial institutions, and capital markets.

Career Background

Agarwal spent over two decades at Axis Bank, holding several senior leadership positions. During this period, he played a pivotal role in building and scaling multiple businesses across diverse client ecosystems.

His responsibilities at Axis Bank included:

• Financial Institutions
• Government Business
• Transaction Banking
• Strategic Client Coverage
• Corporate Banking
• Priority Sector Lending Strategy

Prior to his stint at Axis Bank, Agarwal worked with IFCI in Project Finance and Credit.

Regulatory Disclosure

The bank made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing also references SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Manmohan Parnami, Company Secretary and Compliance Officer, signed the disclosure.