AU Bank's Q2 results: Net profit up 53% to ₹858cr
What's the story
AU Small Finance Bank has reported a whopping 53% jump in its net profit for the second quarter ending September 30, 2026. The bank's net profit stood at ₹858 crore, up from ₹561 crore in the same period last year. The growth is mainly attributed to an increase in interest income during this period.
Financial performance
Total income and interest income
AU Small Finance Bank's total income for the quarter under review rose to ₹6,382 crore from ₹5,224 crore in the same period last year.
The bank's interest income also saw a major jump, rising to ₹5,612 crore from ₹4,511 crore in Q2 of the previous fiscal.
This sharp increase has contributed significantly to the bank's overall financial performance for this quarter.
Profitability indicators
Net interest income and margin
The bank's net interest income (NII) for the July-September quarter improved to ₹2,820 crore from ₹2,144 crore in the September quarter of 2025.
This marks a 32% growth, reflecting the bank's ability to generate revenue from its lending activities.
Additionally, the net interest margin (NIM) also improved slightly to 5.8% from 5.5% at the end of September last year.
Risk management
Improving asset quality
AU Small Finance Bank's asset quality also improved during this period, with gross non-performing assets (NPAs) declining to 1.99% of gross advances at the end of September quarter from 2.41% a year ago.
Net NPAs or bad loans also moderated to 0.81%, down from 0.88% in the same period last year.
These improvements reflect the bank's effective risk management strategies and its focus on maintaining a healthy loan portfolio.