AU Small Finance Bank Limited reported a strong set of results for the quarter ended June 30, 2025 (Q1 FY26), with significant growth in profitability and steady improvement in key financial metrics.
For Q1 FY26, the bank’s net profit (PAT) surged to ₹581 crore, registering a 15.6% increase from ₹503 crore in the same quarter last year (Q1 FY25). Sequentially, the profit was also higher compared to ₹503.7 crore in Q4 FY25.
Key financial highlights:
| Metric | Q1 FY26 | Q1 FY25 | Change |
|---|---|---|---|
| Net Profit (PAT) | ₹581 crore | ₹503 crore | ▲ 15.6% |
| Net Interest Income (NII) | ₹2,044.6 crore | ₹1,920.5 crore | ▲ 6.5% |
| Pre-Provision Operating Profit (PPOP) | ₹1,312 crore | ₹952 crore | ▲ 37.9% |
| Provisions | ₹533.3 crore | ₹282.8 crore | – |
The bank’s total income for the quarter rose to ₹5,189 crore, compared to ₹4,278 crore in Q1 FY25, marking a solid increase of nearly 21%.
Operating profit before provisions came in at ₹1,312 crore, showing robust 37.9% growth over last year. The Net Interest Income (NII) — a key measure of a bank’s core earnings — grew 6.5% YoY to ₹2,044.6 crore.
Asset quality remains stable
On the asset quality front, the Gross NPA ratio stood at 2.47% in Q1 FY26, up slightly from 2.28% in Q4 FY25. The Net NPA ratio also inched up to 0.88% compared to 0.74% in the previous quarter, though remaining well under control.
| Ratio | Q1 FY26 | Q4 FY25 |
|---|---|---|
| Gross NPA % | 2.47% | 2.28% |
| Net NPA % | 0.88% | 0.74% |
AU Small Finance Bank attributed its strong quarterly performance to a steady rise in advances, improved margins, and prudent cost management.
The Q1 FY26 results reflect the bank’s consistent focus on profitability, maintaining healthy asset quality, and strengthening its balance sheet in a challenging environment.
