AU Small Finance Bank has filed a regulatory declaration confirming that no encumbrance has been created on its equity shares by any member of its promoter and promoter group during Financial Year 2025-26. The disclosure was made pursuant to Regulation 31(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and was submitted to the stock exchanges on 02/04/2026 from Jaipur.

Regulatory Compliance Under SEBI Takeover Regulations

The declaration affirms that none of the persons or entities classified under the promoter and promoter group, including persons acting in concert, have directly or indirectly encumbered equity shares of AU Small Finance Bank, other than those already disclosed to the stock exchanges during Financial Year 2025-26. This filing is a mandatory annual compliance requirement under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Promoter and Promoter Group Entities Covered

The declaration encompasses the following individuals and entities, as detailed below:

Declaration Details

The declaration was signed by Sanjay Agarwal in his capacity as Promoter, and a copy has been submitted to the Audit Committee of AU Small Finance Bank Limited at its registered office located at 19-A, Dhuleshwar Garden, Jaipur, Rajasthan - 302001. The filing reaffirms the promoter group's compliance with applicable SEBI disclosure norms for the relevant financial year.

AU Small Finance Bank delivered exceptional Q4 FY26 results during its earnings conference call held on April 27, 2026, showcasing strong financial performance across key metrics. The bank reported significant profit growth and improved operational efficiency while maintaining robust asset quality.

Strong Financial Performance

The bank's quarterly performance demonstrated remarkable growth momentum with profit after tax surging across multiple timeframes:

For the full financial year FY26, the bank achieved profit after tax of ₹2,641 crores, representing 25% year-on-year growth. The return on assets improved to 1.6% for the full year with return on equity reaching 14.2%.

Robust Balance Sheet Growth

AU Small Finance Bank maintained strong growth across both assets and liabilities, outpacing estimated private sector banking growth:

The deposit growth significantly exceeded the estimated private sector banking growth of 13%, with CASA deposits maintaining strong momentum. The bank's stable deposit base, including CASA, retail, and non-callable wholesale term deposits, remained steady at 79%.

Margin Expansion and Cost Management

Net interest margins expanded by 24 basis points quarter-on-quarter to 5.96%, driven by multiple factors including a 12 basis points decline in cost of funds, 6 basis points benefit from lower gross slippages and higher NPA resolutions, and approximately 7 basis points seasonal benefit.

The cost to assets ratio continued improving despite ongoing investments in manpower, distribution, branding, and technology. Excluding CGFMU premium, the full-year cost to assets ratio declined by 19 basis points to 4.1% from 4.3% in FY25.

Asset Quality Improvement

Asset quality metrics showed continued normalization with significant improvements across key indicators:

The improvement was led by normalization in the unsecured portfolio and seasonal recovery in secured assets. Credit cost inclusive of CGFMU premium was around 1% of average assets for the full year.

Business Segment Performance

The bank's diversified portfolio showed mixed but overall positive trends:

Secured Assets: Grew 7% quarter-on-quarter and 23% year-on-year, with wheels business reaching approximately ₹46,400 crores (27% YoY growth) and gold loan business doubling to approximately ₹4,000 crores.

Commercial Banking: Formed 22% of lending business, growing 29% year-on-year and 12% quarter-on-quarter to reach around ₹31,000 crores with additional non-fund based book of approximately ₹11,000 crores.

Unsecured Business: Showed recovery with 7% quarter-on-quarter growth led by MFI and personal loans, though declining 1% year-on-year.

Technology and AI Initiatives

Management highlighted significant investments in Agentic AI and technology transformation. The bank launched its first AI-native loan origination system for gold loans, with plans to expand across mortgages, commercial banking, and other products. The technology roadmap focuses on enterprise-wide AI platform adoption and process automation to drive operational efficiency.

Outlook and Strategic Priorities

The Board recommended a dividend of ₹1 per share for FY26, subject to requisite approvals. Management emphasized continued focus on growing core asset franchises, scaling liabilities franchise, and driving structural efficiency through AI and technology. The bank filed its final universal banking license application in March 2026 and awaits regulatory approvals following RBI's amendment of NOFHC requirements.