Deposits rise 29% and gross loan portfolio grows 25% year-on-year
AU Small Finance Bank (AU SFB), India’s largest small finance bank, reported a 53% year-on-year increase in net profit to ₹858 crore for the quarter ended September 30, 2026.
Net interest income rose 32% to ₹2,820 crore, while net interest margin improved to 5.8% from 5.5% a year ago. The cost of funds declined to 6.41% from 6.83%, and credit cost fell to 0.8% from 1.2%.
The bank’s deposit book grew 28.6% year-on-year to ₹1,70,460 crore, while its gross loan portfolio increased 25.1% to ₹1,53,769 crore. CASA deposits rose 29% to ₹50,289 crore. Asset quality improved, with gross non-performing assets declining to 1.99% and net non-performing assets at 0.81%.
Commenting on the performance, Mr. Sanjay Agarwal, Founder, MD & CEO of AU Small Finance Bank, said, “Even as the global environment navigates heightened geopolitical and macroeconomic uncertainties, India continues to stand out for its resilience and sustained domestic momentum. This reinforces my conviction in the strength of India’s economic fundamentals and the immense opportunity that its long-term growth journey presents. Equally, I draw confidence from the strength we are building at AU. Strong institutions are built not merely for favourable conditions, but to navigate cycles while remaining firmly focused on the long term.”
During the quarter, the bank added 183 net touchpoints, including 45 liability branches and over 100 asset centres. Its digital platform, AU 0101, crossed 46 lakh registered users, while its AI-powered Gold Loan Agentic LOS went live across 40 branches.
The bank serves over 128 lakh customers through 3,103 touchpoints across 21 states and four Union Territories.
