AU Small Finance Bank reported a 53 percent year on year increase in net profit to Rs 858 crore for the quarter ended September 30, 2026, compared with Rs 561 crore in the corresponding quarter of the previous year. The growth was supported by higher interest income and an improvement in net interest income.

Total income increased to Rs 6,382 crore during the quarter from Rs 5,224 crore in the same period a year ago. Interest income rose to Rs 5,612 crore from Rs 4,511 crore, reflecting continued growth in the bank's lending and interest earning assets.

Net interest income increased 32 percent year on year to Rs 2,820 crore in the July to September quarter from Rs 2,144 crore in the September 2025 quarter. The bank's net interest margin also improved to 5.8 percent from 5.5 percent a year earlier.

Asset quality showed further improvement during the quarter. Gross non performing assets declined to 1.99 percent of gross advances at the end of September 2026, compared with 2.41 percent a year ago. Net NPAs also moderated to 0.81 percent from 0.88 percent during the same period.

The bank's capital adequacy ratio, however, declined marginally to 18.54 percent from 18.78 percent at the end of September 2025.

AU Small Finance Bank Managing Director and CEO Sanjay Agarwal said the quarterly performance reflected the bank's focus on balancing growth and profitability while maintaining prudence. He added that balanced franchise growth, improving profitability and stable asset quality provide a foundation for sustained long term performance.