AU Small Finance Bank Q1 Results: Net profit rises 16% at ₹581 crore, asset quality deteriorates
The Jaipur-based bank said its net profit rose 16% at ₹ 581 crore during the first quarter of this financial year, as compared to ₹ 503 crore in the same period of the previous fiscal year.
Its total income stood at ₹ 5,189 crore during the June 2025 quarter, up from ₹ 4,278 crore in the same period a year ago.
Net interest income (NII) surged to ₹ 2,045 crore in the reported quarter against ₹ 1,921 crore a year ago.
Interest earned by the lender increased to ₹ 4,378 crore when compared with ₹ 3,769 crore in the June quarter of FY25.
AU Small Finance Bank's operating profit jumped to ₹ 1,312 crore in Q1 of FY26 from ₹ 952 crore in the same period last fiscal year.
AU Small Finance Bank MD and CEO Sanjay Agarwal said: "We have reported another set of consistent performance in a seasonally soft quarter, showing sustainable growth in deposits, assets, and profitability".
As the economic cycle strengthens, AU is well-positioned to navigate near-term uncertainties while staying committed to the long-term vision of building a forever bank that can truly scale with sustainability, he added.
Its asset quality deteriorated, as gross non-performing assets (NPAs) rose to 2.47% of gross advances at the end of the June quarter, from 1.78% a year ago.
Gross loan portfolio (GLP) rose 18% to ₹ 117,624 crore in Q1 FY25, as compared to ₹ 99,792 crore last year.
Similarly, net NPAs, or bad loans, increased to 0.88% against 0.63% in the year ago period.
As a result, provisions and contingencies almost doubled to ₹ 533 crore during the first quarter, when compared to ₹ 283 crore a year ago.
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