AU Small Finance Bank Ltd

Capital / Securities

• Allotted 6,47,261 ESOP shares of Rs 10 on Aug 25, 2026; paid-up capital now Rs 7,50,57,80,960.

Overview

• Standalone FY2025-26 reporting.
• RBI in-principle approval for transition to Universal Bank.
• Merger with Fincare SFB completed.
• PAT ₹2,641 crore.
• CRAR 18.7%.

Key ESG Risks & Opportunities

• Material ESG risk: climate risk (physical/transition).
• Opportunities: Green finance growth, renewable energy/EV lending, financial inclusion.
• Planet First AU Green Fixed Deposit mobilised ₹2,952 crore.

Governance & Policy Highlights

• Board comprises 10 directors.

Social Responsibility & Workforce

• Total employees: 59,207.

Environmental Performance

Stakeholder Engagement & Complaints

Other Notable Metrics

Meeting Details

• Aug 13, 2026: Equirus Annual India conference; Type: Individual &; Mode not specified.
• Aug 17, 2026: Motilal Oswal 22nd Annual Global Investor Conference; Mode: Physical; Location: Mumbai; Type: Group meeting.
• Aug 27, 2026: MS India Financials Investor Group Trip; Mode: Virtual; Type: Group meeting.

Purpose

• Purpose: Schedule of Analysts/Institutional Investor meets for AU Small Finance Bank.

Conference call audio availability

• Audio recording of the July 25, 2026 conference call for Q1 FY2026-27 unaudited results is on bank's website.

Business Overview

• Largest Indian Small Finance Bank; focus on retail secured, MSME, and inclusive lending.
• AI-first platform strategy with Run/Build/Transform and bank-native AI architecture.
• In-principle approval for transition to Universal Bank; potential growth enabler.
• Pan-India footprint with ~2,900 touchpoints and governance-driven risk management.

Operational Highlights

• Gross loan portfolio up 23% YoY to ₹1,44,250 cr.
• Net interest income rose 32% YoY to ₹2,695 cr; NIM 5.9%.
• Total deposits up 24% YoY to ₹1,57,727 cr; CASA 29%.
• Slippages declined 22% YoY; GNPA 2.10%; NNPA 0.76%.
• Cost of funds at 6.48%; LCR 119%.
• Cross-border: zero forex margin on remittances; four new lifecycle-based credit cards.
• AI & tech: agentic AI and unified lead platform; 25,000+ users, 92% daily usage.
• AU 0101: enhanced UPI interface; processes over 90% of transactions.
• COO elevated to Deputy CEO; risk and tech teams strengthened.

Financial Performance

• Net Total Income ₹3,385 cr; up 19% YoY.
• Net interest income ₹2,695 cr; +32% YoY; NIM 5.9%.
• Core PPoP ₹1,426 cr; +41% YoY.
• Provisions ₹371 cr; -30% YoY.
• PAT ₹796 cr; +37% YoY; ROA 1.7%; ROE 15.6%.
• Deposits ₹1,57,727 cr; Borrowings ₹13,419 cr.
• CRAR 18.9%; Tier I 17.1%.
• GNPA 2.10%; NNPA 0.76%; PCR ex write-off 64%.
• RWA to total assets ~61%.

Capital & Liquidity

• Deposits ₹1,57,727 cr; CASA contribution ~29%.
• Borrowings ₹13,419 cr; CD ratio 88% (ex-refinance 80%).
• LCR averaged 119%; additional liquidity 10-15% of LCR in quality assets.
• CRAR 18.9%; Tier I 17.1%.

Strategy & Outlook

• Run the Bank: protect core, improve operating leverage; uptime >99.9%.
• Build the Bank: scale digital adoption; reduce cost-to-serve; faster straight-through processing.
• Transform the Bank: data lake, governance, analytics; AI Center of Excellence; 200+ engineers.
• Three-pronged edge: customer insight, distribution, digital; UB transition.
• Headroom for growth: ~0.7% market share in core; ~2,900 touchpoints; underserved segments.
• AU 0101 real-time payments expansion; broader dealer and partner integration.

Governance & Leadership

• Board approves elevation of COO Yogesh Jain to Deputy CEO.
• Ownership: Domestic 64%, Foreign 36%.
• Executive Directors and Independent Directors listed.

Financial highlights

• PAT rose 37% YoY to ₹796 cr.
• NII grew 32% YoY to ₹2,695 cr.
• NIM expanded 47 bps YoY to 5.9%.
• Deposits up 24% YoY to ₹1,57,727 cr.
• Gross loan portfolio up 23% YoY to ₹1,44,250 cr.
• Slippages down 22% YoY to ₹798 cr.
• GNPA 2.10%; NNPA 0.76%.
• EPS ₹11; ROA 1.7%; ROE 15.6%.
• Capital adequacy 18.9%; Tier I 17.1%.

Leadership update

• Yogesh Jain elevated to Deputy CEO, effective July 25, 2026.

Technology & AI

• AI-enabled gold loan origination platform rolled out; mobile version live.
• AI origination extended to mortgages.
• AI Centre of Excellence established; 50+ use cases.
• AML alerts reviewed via AI ~70%.
• Over 90% of transactions processed via AU 0101.
• UPI interface enhanced to AU 0101 v2.0.

Balance sheet & liquidity

• Total deposits ₹1,57,727 cr; up 24% YoY.
• CASA ratio 29%.
• Gross loan portfolio ₹1,44,250 cr; up 23% YoY.
• Cost of funds 6.48%; down 60 bps YoY.
• Disbursements up ~42% YoY.
• Average LCR 119%.

Strategic & ESG updates

• Recognised as Top 10 Best Companies To Work For 2026.
• Launched four-credit card portfolio: AU Ananta, Laksya, Tejas, Prathama.
• Zero-margin inward/outward remittances introduced.
• 3-in-1 Account with MOFSL includes fund-blocking feature.
• CSR programs: AU Ignite and Bano Champion active across Rajasthan; thousands trained.