AU Small Finance Bank reported a net profit of ₹858 crore for the second quarter of FY27, up 53% from ₹561 crore a year earlier, according to Business Standard on 24 October 2026. Spectate Media has not seen the bank's filing, and the report gives only year-on-year comparisons.
Income and margin
Total income was ₹6,382 crore, up from ₹5,224 crore, and interest income was ₹5,612 crore, up from ₹4,511 crore. Net interest income rose 32% to ₹2,820 crore from ₹2,144 crore. The net interest margin was 5.8%, against 5.5% at the end of September 2025.
Asset quality and capital
Gross NPA was 1.99% of gross advances, down from 2.41% a year earlier, and net NPA was 0.81%, down from 0.88%. The capital adequacy ratio was 18.54%, against 18.78% a year earlier. The report does not give provisions, credit cost, loan or deposit growth, or the share of low-cost deposits.
Management comment
Managing director and chief executive Sanjay Agarwal said the quarter reflects an institution that "combines growth with profitability, and ambition with prudence."
Key numbers
- Net profit: ₹858 crore (Up 53% from ₹561 crore)
- Net interest income: ₹2,820 crore (Up 32%)
- Net interest margin: 5.8% (From 5.5% a year earlier)
- Gross NPA: 1.99% (From 2.41% a year earlier)
What boards and CFOs should note
Three points stand out. First, profit grew faster than net interest income, which rose 32%, so something beyond the margin also helped, though the report does not say what. Second, a margin that widened to 5.8% while bad loans fell is a combination worth checking against the filing. Third, capital adequacy eased slightly from a year ago, though it remains well above 18%.
Source: Business Standard, 24 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
