AU Small Finance Bank Secures CARE AA: Stable Rating, Reflecting Strong Financial Performance

AU Small Finance Bank (AUSFB), India's largest small finance bank, has received a vote of confidence from CARE Ratings, which reaffirmed its CARE AA: Stable rating for Long-Term Debt Instruments and Tier-II Bonds. The rating agency also assigned the same rating to the bank's Infrastructure Bonds worth ₹1,000 crore. Additionally, AUSFB's Short-term Instruments (Certificate of Deposits) maintained their CARE A1+ rating, indicating the highest level of safety regarding timely payment of financial obligations.

Key Highlights

CARE AA: Stable rating reaffirmed for Long-Term Debt Instruments and Tier-II Bonds
Same rating assigned to new Infrastructure Bonds worth ₹1,000 crore
Short-term Instruments maintain CARE A1+ rating
Ratings reflect AUSFB's position as India's largest small finance bank

Financial Performance

The credit rating reaffirmation is supported by AUSFB's strong financial performance. Let's look at some key financial metrics:

Metric	FY 2025	YoY Change
Total Assets	₹157,846.00 crore	44.25%
Net Profit	₹2,105.90 crore	37.22%
Total Revenue	₹18,590.00 crore	51.73%
EBITDA	₹3,046.60 crore	36.93%
EPS	₹28.32	23.24%

The bank has demonstrated robust growth across various financial parameters, indicating its strong market position and operational efficiency.

Balance Sheet Strength

AUSFB's balance sheet has shown significant improvement:

Metric	FY 2025	YoY Change
Total Equity	₹17,166.30 crore	36.68%
Investments	₹37,847.50 crore	39.49%
Current Assets	₹11,757.20 crore	44.05%

The substantial growth in equity and investments underscores the bank's financial stability and its capacity to support future growth.

Profitability and Efficiency

The bank's profitability metrics have also shown positive trends:

Metric	FY 2025	YoY Change
Operating Profit	₹8,572.40 crore	44.67%
Net Interest Margin (NIM)	53.36%	-4.95%

While the Net Interest Margin has slightly decreased, the significant growth in operating profit indicates improved operational efficiency.

Conclusion

The reaffirmation of CARE AA: Stable rating for AU Small Finance Bank reflects its consistent business growth, comfortable capitalization, and strong market position. The bank's ability to maintain high credit ratings, even for its new Infrastructure Bonds, demonstrates investor confidence in its financial stability and growth prospects.

As AUSFB continues to expand its operations and strengthen its balance sheet, it remains well-positioned to capitalize on growth opportunities in the Indian banking sector. However, investors should keep an eye on the bank's ability to maintain its asset quality and profitability in the face of potential economic challenges.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.86%	+0.84%	+3.68%	+22.05%	+76.79%	+124.09%

AU Small Finance Bank has declared the results of its postal ballot process, with all six proposed resolutions receiving overwhelming shareholder approval. The bank announced the voting outcomes on December 26, 2025, marking the successful completion of its corporate governance initiatives.

Voting Results Overview

The postal ballot, conducted through remote e-voting from November 26 to December 25, 2025, saw strong participation from shareholders across all categories. Out of 1,87,601 total shareholders, the voting process received substantial support for all proposed resolutions.

Resolution Details:	Type	Votes in Favour (%)	Votes Against (%)
Mr. N S Venkatesh Appointment	Special	99.83%	0.17%
Mr. Satyajit Dwivedi Appointment	Special	99.83%	0.17%
Ms. Malini Thadani Re-appointment	Special	94.25%	5.75%
CEO Sanjay Agarwal Remuneration	Ordinary	99.37%	0.63%
Deputy CEO Uttam Tibrewal Remuneration	Ordinary	99.37%	0.63%
CEO Sanjay Agarwal Re-appointment	Ordinary	99.23%	0.77%

Board Appointments Approved

Shareholders approved the appointment of two new independent directors with near-unanimous support. Mr. Narasinganallore Venkatesh Srinivasan (DIN: 01893686) and Mr. Satyajit Dwivedi (DIN: 08118455) were both appointed as independent directors with 99.83% votes in favour.

The re-appointment of Ms. Malini Thadani (DIN: 01516555) for a second three-year term as independent director also received approval with 94.25% support, though it faced relatively higher opposition compared to other resolutions.

Executive Leadership Decisions

All executive remuneration and appointment matters received strong shareholder backing:

Executive Position:	Resolution Type	Approval Rate
Managing Director & CEO Remuneration	Ordinary	99.37%
Whole Time Director & Deputy CEO Remuneration	Ordinary	99.37%
Managing Director & CEO Re-appointment	Ordinary	99.23%

Voting Participation Analysis

The postal ballot demonstrated robust shareholder engagement with significant participation across different categories:

Shareholder Category:	Total Shares Held	Voting Participation (%)
Promoter and Promoter Group	17,02,98,412	100.00%
Public Institutions	50,14,62,021	76.97%
Public Non-Institutions	7,45,88,304	24.99%

Financial Context and Growth Trajectory

These governance decisions come at a time when AU Small Finance Bank continues to demonstrate strong financial performance. The bank's recent metrics show substantial growth across key parameters:

Financial Metric:	FY 2025 (₹ Crore)	YoY Change (%)	5-Year Change (%)
Total Assets	1,57,846.00	44.25%	205.95%
Total Equity	17,166.30	36.68%	173.56%
Investments	37,847.50	39.49%	249.94%
Current Assets	11,757.20	44.05%	110.55%

Corporate Governance Excellence

The successful completion of the postal ballot process reflects AU Small Finance Bank's commitment to transparent governance practices. The bank utilized Central Depository Services (India) Limited (CDSL) as the service provider for remote e-voting, ensuring secure and efficient voting procedures.

The scrutinizer's report, prepared by CS Manoj Maheshwari of V. M. & Associates, confirmed the validity of all voting procedures and results. The comprehensive voting process included detailed breakdowns by shareholder categories and maintained full compliance with regulatory requirements under the Companies Act, 2013 and SEBI regulations.

With these approvals in place, AU Small Finance Bank is well-positioned to continue its growth trajectory with strengthened board composition and confirmed executive leadership, supported by strong shareholder confidence in the bank's strategic direction.