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.

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:

Voting Participation Analysis

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

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:

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.

India Ratings has reaffirmed AU Small Finance Bank 's IND A1+ rating on Certificate of Deposits worth INR 30 billion, while withdrawing the rating on Tier II bonds after the INR 5 billion instrument was paid in full. This development comes amidst the bank's continued growth and financial performance.

Key Highlights

• India Ratings reaffirmed IND A1+ rating on Certificate of Deposits worth INR 30 billion
• Rating on Tier II bonds withdrawn after full payment of INR 5 billion instrument
• Bank shows fast-growing franchise with above-average profitability metrics
• Adequate capital buffers noted by the rating agency
• Asset quality pressures observed in unsecured segments

Financial Performance

The rating agency highlighted AU Small Finance Bank's fast-growing franchise, supported by above-average profitability metrics and adequate capital buffers. However, it's worth noting that the bank faces some asset quality pressures, particularly in its unsecured segments.

Asset Quality

The gross Non-Performing Asset (NPA) ratio increased to 2.41%, indicating some challenges in the bank's loan portfolio, especially in unsecured segments. This rise in NPAs warrants close monitoring of the bank's risk management practices and loan book quality.

Balance Sheet Analysis

An examination of AU Small Finance Bank's balance sheet reveals significant growth across various financial metrics:

The substantial growth in total assets and investments suggests that the bank is expanding its operations and market presence. The increase in shareholders' capital indicates a strengthening of the bank's equity base, which aligns with the rating agency's observation of adequate capital buffers.

Conclusion

While AU Small Finance Bank demonstrates strong growth and maintains a positive rating on its short-term instruments, the increase in NPAs in unsecured segments presents a challenge. The bank's management will need to focus on maintaining asset quality while pursuing growth opportunities. Investors and stakeholders should keep a close eye on the bank's risk management strategies and their effectiveness in addressing the asset quality pressures in the coming quarters.

As the banking sector continues to evolve, AU Small Finance Bank's ability to balance growth with prudent risk management will be crucial for its long-term success and stability.