AU Small Finance Bank shares jumped more than 6% in Monday’s trade after the lender announced its Q2 FY26 results, showing steady operational performance despite a slight decline in profit.
For the quarter ended September 2025, the bank reported a net profit of ₹561 crore, down 1.8% year-on-year compared to ₹571 crore in the same period last year. The marginal decline in profit was mainly due to higher provisioning during the quarter.
The bank’s net interest income (NII) rose 8.6% year-on-year to ₹2,144 crore from ₹1,974 crore, supported by healthy loan growth and improved margins. Its operating profit also climbed 6.9% to ₹1,210 crore against ₹1,132 crore a year ago, reflecting continued strength in core operations.
However, provisions increased sharply by 28.9% to ₹481 crore, up from ₹373 crore last year, which impacted the bottom line.
On the asset quality front, the numbers remained stable. The gross NPA stood at 2.41%, slightly lower than 2.47% in the previous quarter, while the net NPA remained flat at 0.88% quarter-on-quarter.
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