AU Small Finance Bank Q3 Results: AU Small Finance Bank on Tuesday, January 20, posted a 26.3% year-on-year (YoY) increase in net profit for the third quarter of the financial year 2025-26 (Q3 FY26) post market hours today.
The lender's profit stood at ₹667.65 crore during the quarter under review as against ₹528.44 crore in the year-ago period. The growth was led by a healthy 15.7% YoY increase in the company's net interest income (NII) to ₹2,341.26 crore during the quarter under review.
The net interest margin (NIM) stood at 5.7% in Q3 FY26, as against 5.9% in the same period last year and 5.5% in the preceding quarter.
The bank’s pre-provisioning operating profit (PPoP) rose 3% YoY to ₹1,235 crore, while credit cost reduced by 34% YoY to ₹331 crore, led by normalisation in MFI and credit cards.
The total deposits grew 23.3% YoY and 4.5% QoQ to ₹1,38,415 crore, the company said in a press release. CASA remained unchanged at ~29% in Q3. Meanwhile, CASA deposits grew 16% YoY, led by current deposits growth of 31% YoY to ₹7,404 crore and savings deposits growth of 13% YoY to ₹32,543 crore.
Asset quality highlights
Asset quality remained stable, benefiting from normalisation in unsecured businesses and seasonal recovery in secured assets. The gross non-performing assets (GNPA) declined quarter-on-quarter (QoQ) to 2.30% from 2.41%, and net NPA was unchanged at 0.88%.
The bank increased its presence by adding a net of 100 touchpoints, including 27 new liability branches, during the quarter, taking the total number of touchpoints to 2,726 across 21 states and 4 union territories.
Commenting on the performance, Sanjay Agarwal, MD & CEO, AU Small Finance Bank, said, “Banking sector growth remained resilient this quarter, supported by GST rationalisation and festive demand, even as the deposit environment stayed highly competitive. Against this backdrop, we delivered a strong and well‑rounded performance in Q3 across growth, margins, asset quality and profitability."
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