AU Small Finance Bank has published the audio recording of its conference call with analysts and investors, which was held on July 25, 2026. The discussion focused on the bank’s unaudited financial results for the quarter ended June 30, 2026. This release ensures that stakeholders who could not attend the live session can access the management’s commentary and responses regarding the latest quarterly performance.

The disclosure is made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank notified both the National Stock Exchange of India Ltd. and BSE Limited of this development via a letter dated July 25, 2026, bearing reference number AUSFB/SEC/2026-27/156. This follows an earlier communication dated July 14, 2026, which announced the scheduling of the conference call.

Disclosure Details

The audio recording is accessible to the public on the bank’s official website under the investor relations section. The specific link provided for accessing the recording is https://www.au.bank.in/investors/quarterly-reports .

The submission was signed by Manmohan Parnami, the Company Secretary and Compliance Officer of AU Small Finance Bank Limited. His membership number is F9999. The registered office of the bank is located at 19-A Dhuleshwar Garden, Ajmer Road, Jaipur, Rajasthan.

What This Means for Investors

While this filing does not contain new financial figures, it serves as a critical compliance step following the initial announcement of quarterly results. Investors are advised to review the recording for any forward-looking statements or clarifications provided by management during the Q&A session. The availability of the recording supports transparency and allows for a detailed review of the bank’s strategic direction and operational updates for Q1FY27.

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 metrics on an annual basis. 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 geopolitical uncertainties and tighter liquidity conditions.

The Board of Directors approved the unaudited financial results on July 25, 2026, under Regulation 30 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. The bank also announced leadership changes, elevating Yogesh Jain from Chief Operating Officer to Deputy CEO effective July 25, 2026, to strengthen management bandwidth as operations scale.

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.

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. The table below captures the NPA movement:

Slippages declined 22% YoY to ₹798 crore, and provisions fell 30% YoY to ₹371 crore, including a one-time provision of ₹23 crore for strengthening policies in MFI, personal loans, two-wheeler, and EEFI segments. The capital adequacy ratio remained robust at 18.9%, with Tier I capital at 17.1%.

Strategic Initiatives and Technology

The bank continues its transition toward a universal banking model, having received in-principle approval from the Reserve Bank of India. Technological advancements include the rollout of an AI-enabled gold loan origination platform and an agentic AI platform built with Intellect Design Arena. More than 90% of transactions are now processed through the AU 0101 app, which recently launched an enhanced real-time payments interface. Additionally, AU Small Finance Bank strengthened its partnership with Motilal Oswal Financial Services by introducing a fund-blocking feature for their 3-in-1 Account proposition.

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.