AU Small Finance Bank reported robust growth across key balance sheet metrics for the quarter ended December 31, 2025 (Q3 FY26), demonstrating steady momentum in both deposits and advances. The bank shared its provisional business update with the exchanges on Sunday, January 4, highlighting strong year-on-year performance across major financial parameters.

Deposit Performance Shows Strong Momentum

The bank's deposit base expanded significantly during the quarter, with total deposits reaching ₹1,38,420.00 crore as of December 31, 2025. This represents a substantial 23.30% increase from ₹1.12 lakh crore recorded in the corresponding period of the previous year.

*Calculated based on CASA ratio and total deposits

CASA deposits demonstrated healthy growth of 16.10% to ₹39,950.00 crore during the quarter. However, the CASA ratio moderated to 28.90% from 30.60% recorded a year earlier, indicating a shift in the deposit mix composition.

Advances Portfolio Registers Robust Growth

The bank's lending portfolio showed strong expansion, with gross advances increasing 24.00% year-on-year to ₹1,25,210.00 crore at the end of the December quarter, compared to ₹1.01 lakh crore in Q3 FY25. The portfolio also registered a quarter-on-quarter growth of 6.50%.

Including the securitised and assigned loan portfolio, the bank's gross loan book stood at ₹1.30 lakh crore, marking a 19.30% rise from ₹1.09 lakh crore in the year-ago period. The securitised and assigned portfolio declined significantly to ₹4,690.00 crore as of December 31, 2025, from ₹7,932.00 crore in the corresponding period last year.

Previous Quarter Performance Context

For the July-September quarter (Q2 FY26), AU Small Finance Bank had reported a year-on-year decline in net profit for the first time in six quarters. Net profit fell 1.80% to ₹561.00 crore from ₹571.00 crore a year earlier, primarily due to higher provisioning that weighed on earnings. Total income for Q2 FY26 rose nearly 15.00% year-on-year to ₹5,224.00 crore, while provisions surged 29.00% to ₹481.00 crore.

The bank emphasized that the Q3 FY26 figures are provisional in nature and are being disclosed ahead of the formal announcement of its financial results for the quarter. Shares of AU Small Finance Bank ended marginally lower on Friday, January 2, by 0.01% at ₹999.40 on the NSE.

AU Small Finance Bank has executed significant corporate actions including multiple employee stock option allotments and a major block trade. The bank continues to demonstrate active market engagement and sustained commitment to employee incentive programs through its comprehensive ESOP schemes.

Latest ESOP Allotment

On December 30, 2025, AU Small Finance Bank allotted 2,48,641 equity shares of face value Rs. 10.00 each pursuant to the exercise of Employee Stock Options. The allotment was distributed across multiple ESOP schemes:

Updated Share Capital Structure

Following the latest allotment, the bank's paid-up equity share capital has increased from Rs. 7,46,93,20,770 to Rs. 7,47,18,07,180. This represents an increase of Rs. 24,86,410, reflecting the cumulative impact of recent ESOP exercises:

Previous ESOP Activity

Earlier in December, the bank had allotted 2,71,991 equity shares on December 12, 2025, across similar ESOP schemes. The December 12 allotment included 24,031 shares under ESOP 2016, 36,390 shares under ESOP 2018, 1,77,680 shares under ESOP 2020, and 33,290 shares under ESOP 2023.

Block Trade Activity

The bank had also executed a substantial block trade on the National Stock Exchange involving 9,41,745 shares at Rs. 704.00 per share, totaling Rs. 66.30 crores. This transaction demonstrated significant institutional investor interest in the bank's equity.

Comprehensive ESOP Program

AU Small Finance Bank operates multiple Employee Stock Option Plans spanning different years, reflecting its long-term commitment to employee participation in the bank's growth. The bank has consistently allotted shares under various schemes including ESOP 2015, 2016, 2018, 2020, and 2023, indicating a structured approach to employee incentivization.

Regulatory Compliance

The bank has maintained transparency by promptly disclosing these allotments under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. These developments underscore the bank's commitment to regulatory compliance and stakeholder communication in the evolving small finance banking sector.