The Board of Directors of AU Small Finance Bank Limited at its meeting held today, approved the financial results for the quarter and financial year ended 31st March 2026.
Executive Summary
Indian macroeconomic environment was relatively on better footing for most part of Q4 but it did see some volatility emanating from the ongoing West Asia crisis towards the later half of March. Amidst this environment, AU delivered a strong all round quarterly performance to finish the year on a high note. With execution firmly on track and fundamentals strengthening, we step into the next phase of growth with conviction.
Commenting on the performance, Mr. Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank said, “It takes at least a decade to build the foundation of a strong bank and entering our tenth year is a deeply meaningful milestone for all of us at AU. Building a Forever Bank demands consistency in strategy, in execution and in values. FY2026 reflects exactly that.
We have strengthened our franchise, embedded technology into our core, and invested in every dimension that matters like governance, leadership, distribution and scale. This month, we launched our first Agentic AI platform, and our first AI-native Loan Origination System on that platform, signalling our intent to fundamentally reimagine banking. I am genuinely excited about what lies ahead and look forward to sharing more in the quarters to come.
The strength of our foundation and the quality of our franchise give me confidence that as we approach our Universal Banking milestone, we do so with clarity of purpose and conviction in our trajectory. We are deeply grateful to the Government of India, RBI and our other regulators, our customers, our shareholders, our team and every stakeholder who makes this journey possible.”
Performance at a glance:
Q4’FY26 highlights
- NII grew by 23% YoY and 10% QoQ to ₹2,582 cr
- NIM expanded by 24bps QoQ to 5.96% in Q4’FY26 from 5.7% in Q3’FY26
- Other income de-grew by 4% YoY but grew by 1% QoQ to ₹731 cr
- Operating expenses grew by 26% YoY and 6% QoQ to ₹1,962 cr
- Cost to Income ratio improved to 59.2% in Q4’FY26 from 59.7% in Q3’FY26 (excluding exceptional items)
- Pre-provisioning operating profit (PPoP) grew by 5% YoY and 11% QoQ to ₹1,352 cr
- Provisions were down 58% YoY and 19% QoQ to ₹269 cr
- PAT was up 65% YoY and 25% QoQ to ₹832 cr
- ROA and ROE for the quarter were to 1.8% and 17.0%