Mumbai : AU Small Finance Bank Limited, India’s largest small finance bank, posted a strong set of financial results for the fourth quarter and full year ended March 31, 2026, driven by robust growth in income, improved asset quality, and expansion across key segments.
The bank reported a 65% year-over-year (YoY) surge in net profit to ₹832 crore for Q4 FY26, compared to ₹504 crore in the same quarter last year. The Board of Directors approved the audited results during a meeting held between 2:30 PM and 3:40 PM on April 27.
Strong Q4 Performance
Total income for the quarter rose 14% YoY to ₹5,750 crore, while profit before tax (PBT) climbed 65% to ₹1,082 crore. Earnings per share (EPS) stood at ₹11.13, up from ₹6.77 in Q4 FY25, reflecting improved profitability and operational efficiency.
Full-Year Growth Momentum
For the full financial year FY26, the bank reported a net profit of ₹2,641 crore, marking a 25% increase over ₹2,106 crore in FY25. Total income for the year grew 16% to ₹21,614 crore, while EPS improved to ₹35.40 from ₹28.32 a year ago.
Dividend Recommendation
The Board has recommended a dividend of Re 1 per equity share (10% on face value of ₹10 each), subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Improving Asset Quality
Asset quality showed notable improvement, with gross non-performing assets (GNPA) declining to 2.03%, compared to 2.28% a year earlier. Net NPA remained stable at 0.74%, indicating disciplined risk management.
Capital Strength and Balance Sheet Expansion
The bank maintained a strong capital position with a Capital Adequacy Ratio (CAR) of 18.68%. Net worth increased to ₹19,627 crore, up from ₹16,930 crore in the previous year.
The balance sheet expanded significantly:
- Total assets rose 21.5% to ₹1,91,797 crore
- Deposits grew 23% to ₹1,52,661 crore
- Advances increased 25% to ₹1,34,276 crore
Segment-Wise Performance
Retail banking remained the key growth driver, with profit jumping to ₹708 crore from ₹253 crore last year. Wholesale banking contributed ₹172 crore, while treasury operations added ₹62 crore in profit.
Strategic Developments
A major milestone for the bank is its transition toward becoming a universal bank. The Reserve Bank of India granted in-principle approval on August 7, 2025, and the bank has already submitted its final application in March 2026.
Additionally, the bank appointed Gaurav Jain as Chief Financial Officer, effective April 27, 2026.
The Board also approved plans to raise up to ₹13,500 crore, including:
- ₹7,500 crore via equity instruments (QIP or preferential allotment)
- ₹6,000 crore through debt instruments, including ₹2,500 crore in Tier II bonds
Operational and Compliance Updates
The bank recorded an incremental employee cost impact of ₹19.81 crore due to the implementation of new labor codes.
The joint statutory auditors—MSKA & Associates LLP and Mukund M Chitale & Co.—issued an unmodified opinion, affirming the accuracy and fairness of the financial statements.
Overall, AU Small Finance Bank Limited’s FY26 performance highlights strong earnings growth, improving asset quality, and strategic progress toward universal banking status, positioning the bank for sustained long-term expansion.
