AU Small Finance Bank profit surges 53% to ₹858 crore in Q2

AU Small Finance Bank on Saturday announced a 53 per cent year-on-year surge in net profit to ₹858 crore for the quarter ended September 30, 2026, propelled by expansion in core lending revenues. The modest lender posted net earnings of ₹561 crore in the corresponding quarter of the previous fiscal year.

Total income climbed to ₹6,382 crore in the September quarter from ₹5,224 crore a year earlier, with interest income rising to ₹5,612 crore against ₹4,511 crore previously, according to a regulatory filing. Net interest income—a key profitability metric—improved 32 per cent to ₹2,820 crore in the July-September period, up from ₹2,144 crore in the year-ago quarter.

The bank's net interest margin, which measures the difference between lending and borrowing rates, expanded to 5.8 per cent from 5.5 per cent at the end of September 2025, reflecting improved pricing power on the balance sheet. Asset quality metrics also showed signs of stabilisation, with gross non-performing assets standing at 1.99 per cent of gross advances at end-quarter, suggesting tighter credit underwriting standards.