AU Small Finance Bank Limited announced its unaudited financial results for the quarter ended December 31, 2025, alongside significant organizational restructuring aimed at strengthening leadership depth and governance. The bank reported robust financial performance while implementing strategic changes to support its transition toward universal banking status.

Financial Performance Highlights

The bank delivered strong financial results for Q3FY26, demonstrating consistent growth across key metrics. Net profit increased substantially compared to the previous year, while maintaining healthy operational efficiency.

For the nine months ended December 31, 2025, the bank reported a net profit of ₹1,809.38 crores compared to ₹1,602.23 crores in the corresponding period of the previous year, marking a growth of 12.93%. Total income for the nine-month period reached ₹15,864.18 crores, up from ₹13,558.77 crores in the previous year.

Key Financial Ratios and Asset Quality

The bank maintained strong asset quality metrics and capital adequacy ratios, reflecting robust risk management practices.

Strategic Leadership Restructuring

The bank announced comprehensive organizational changes as part of its long-term succession planning and leadership development strategy. These changes align with mature governance models and aim to reduce key-person dependency while ensuring faster decision-making.

Board Appointments and Transitions

Mr. Uttam Tibrewal will complete his current term as Whole-Time Director on April 18, 2026, after serving nine years in the position. He will continue as Deputy CEO, leading key business verticals including Retail Assets and Liabilities while focusing on on-ground engagement and geographical expansion.

Board Changes and Departures

The bank also announced the completion of tenure for Mr. V G Kannan, Independent Director, who will cease to be a director from January 21, 2026, after completing his second tenure. Additionally, Mr. Divya Sehgal resigned as Non-Executive Non-Independent Director effective January 20, 2026, following the completion of the Fincare Small Finance Bank integration process.

Employee Stock Option Plan Amendment

The Board approved amendments to the "AU Employees Stock Option Plan 2023," increasing the total number of employee stock options from 2 crores to 5 crores. This expansion aims to attract and retain key personnel while aligning employee goals with the bank's growth objectives through equity-based compensation.

Operational Updates

The bank continues to operate under MD & CEO Mr. Sanjay Agarwal's leadership, supported by a professional senior management team. The organizational changes are designed to enhance oversight capabilities given the increasing scale and complexity of business, risk, and compliance functions. The bank has received in-principle approval from RBI for voluntary transition to Universal Bank status, with the approval valid for 18 months from August 7, 2025.

AU Small Finance Bank Limited has announced a structural change in one of its joint statutory auditors, with the conversion not affecting the ongoing audit engagement. The bank disclosed this development through a regulatory filing dated January 16, 2026, in compliance with SEBI listing regulations.

Auditor Firm Conversion Details

The bank's joint statutory auditor, M S K A & Associates, Chartered Accountants, has undergone a structural transformation by converting into a Limited Liability Partnership under the provisions of the Limited Liability Partnership Act, 2008. The conversion became effective from January 13, 2026.

Continuity of Audit Services

The bank has emphasized that this structural conversion does not result in any change to the existing audit engagement. M S K A & Associates LLP will continue to function and discharge their obligations as joint statutory auditors of the bank for the remaining period of their current tenure.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to inform stock exchanges about material events and corporate developments. The communication was signed by Manmohan Parnami, Company Secretary and Compliance Officer of AU Small Finance Bank Limited.

The bank has informed both the National Stock Exchange of India and BSE Limited about this development, ensuring full transparency with regulatory authorities and stakeholders regarding the auditor firm's structural change.