AU Bank Q2 profit jumps 53% to Rs 858 crore

AU Small Finance Bank reported a 53 per cent surge in net profit to Rs 858 crore for the second quarter ended 30 September 2026, on the back of improvement in interest income. AU Bank Q2 profit stood at Rs 857.69 crore, up from Rs 560.87 crore in the year-ago period. The Jaipur-based lender announced the results on Saturday, 24 October, after its board approved them the same day.

Total income rose to Rs 6,382 crore in the quarter under review from Rs 5,224 crore in the same period a year ago, the bank said in a regulatory filing. Interest income increased to Rs 5,612 crore from Rs 4,511 crore in the corresponding second quarter of the previous year. Total income growth of 22.2 per cent was driven by interest income, which grew 24.4 per cent year on year.

AU Bank Q2 profit and interest income

Net interest income of the bank improved to Rs 2,820 crore in the July-September quarter, from Rs 2,144 crore in the September quarter of 2025, a growth of 32 per cent. Net interest income growth, combined with lower provisions, supported AU Bank Q2 profit. The bank's net interest margin increased to 5.8 per cent from 5.5 per cent at the end of September 2025.

Net total income rose 26 per cent to Rs 3,590 crore, with core other income of Rs 736 crore up 16 per cent year on year and total other income of Rs 770 crore up 8 per cent. Profit before provisions and tax rose 25 per cent to Rs 1,514 crore. The bank's cost-to-assets ratio improved slightly to 3.9 per cent from 4.0 per cent a year earlier.

Provisions for non-performing assets declined to Rs 359.40 crore from Rs 480.83 crore a year earlier. Operating profit rose 25.1 per cent to Rs 1,513.70 crore, supporting AU Bank Q2 profit, and basic earnings per share rose to Rs 11.44 from Rs 7.52. Operating expenses increased to Rs 2,076.56 crore from Rs 1,647.28 crore, reflecting continued investment in infrastructure and personnel as the bank scales its operations.

AU Bank Q2 profit: margins and asset quality

Asset quality of the bank also improved. Gross non-performing assets declined to 1.99 per cent, as against 2.41 per cent a year ago. Net non-performing assets moderated to 0.81 per cent, as against 0.88 per cent in the year-ago period. The improvement in asset quality, together with the higher net interest margin, explains much of the profit jump. The capital adequacy ratio decreased to 18.54 per cent, from 18.78 per cent at the end of September 2025.

"This quarter's performance is a reflection of the institution we are steadily building, one that combines growth with profitability, and ambition with prudence," AU Small Finance Bank MD and CEO Sanjay Agarwal said. He added that the balanced growth of the franchise, improving profitability and stable asset quality reinforce confidence that the foundations for sustained, long-term performance are firmly in place.

AU Bank Q2 profit and balance sheet growth

The bank's gross loan portfolio grew 25 per cent year on year to Rs 1.54 lakh crore, according to its investor presentation, while deposits grew 29 per cent to Rs 1.70 lakh crore. AU Bank Q2 profit of Rs 858 crore came on that larger balance sheet, with interest earned of Rs 5,611.81 crore and profit before tax of Rs 1,154.30 crore. The joint statutory auditors issued an unmodified limited-review conclusion on the results.