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 been added to the BSE Bankex index as part of the latest index rejig, marking a notable development for the small finance bank. The inclusion took effect at 3pm today and carries a valuation of USD 10.00 million.

Index Addition Details

The BSE Bankex reconstitution has brought AU Small Finance Bank into the banking sector index, which tracks the performance of leading banking stocks listed on the Bombay Stock Exchange. This addition represents recognition of the bank's growing market presence and financial performance.

Market Implications

Index inclusions typically generate increased institutional investor interest, as many funds are mandated to track specific indices. This development could potentially lead to enhanced trading volumes and improved liquidity for AU Small Finance Bank shares. The USD 10.00 million valuation associated with this addition reflects the bank's current market positioning within the banking sector.

The BSE Bankex serves as a key benchmark for banking sector performance, and AU Small Finance Bank's inclusion demonstrates its growing significance in India's financial services landscape.