AU Small Finance Bank shares rally 5% as Q1 PAT jumps 37% to Rs 796 crore, NII up 32% YoY

Shares of AU Small Finance Bank rallied 5% to Rs 1,051 on the BSE on Monday after the private lender reported a 37% year-on-year rise in net profit to Rs 796 crore for the April-June quarter, compared with Rs 581 crore in the same period last year.The bank's net interest income (NII) rose 31.8% YoY to Rs 2,695.5 crore from Rs 2,044.7 crore, according to a regulatory filing.

Along with its Q1 results, AU Small Finance Bank said it has fixed July 31, 2026 as the record date for determining shareholders eligible to receive the final dividend, if declared at the upcoming Annual General Meeting.On asset quality, gross NPA increased to 2.10% in Q1 from 2.03% in the previous quarter, while net NPA edged up to 0.76% from 0.74% QoQ. However, on a year-to-date basis, gross NPA improved from 2.47% in the corresponding quarter of the previous year, while net NPA declined from 0.88% in the year-ago period.Also Read: HDFC Bank shares fall as 3 US law firms launch probe over alleged federal law violationsProvisions fell to Rs 371.5 crore during the quarter from Rs 533.3 crore a year earlier.

The lender's pre-provisioning operating profit (PPoP) rose 9% YoY to Rs 1,435 crore, while core PPoP, excluding treasury income, jumped 41% YoY to Rs 1,426 crore.AU Small Finance Bank's total deposits grew 24% YoY and 3% QoQ to Rs 1,57,727 crore.

CASA deposits increased 22% YoY and 5% QoQ, taking the CASA ratio to 29%.The gross loan portfolio expanded 23% YoY and 3% QoQ to Rs 1,44,250 crore, while disbursements rose around 42% YoY. Secured businesses, which include retail and commercial loans, grew 25% YoY and 4% QoQ. Unsecured businesses increased 11% YoY and 5% QoQ.Loan slippages declined 22% YoY to Rs 798 crore.

Cost-to-assets, excluding the CGFMU premium, stood at 4.0%, compared with 3.9% in Q1 FY26.

Annualised credit cost, including the CGFMU premium, improved to 0.8% from 1.4% in Q1 FY26.Management changesThe lender also announced a leadership change.

Yogesh Jain, currently the Chief Operating Officer, has been elevated to Deputy CEO with effect from July 25, 2026, following a recommendation from the Nomination and Remuneration Committee.The move is intended to strengthen the bank's leadership structure and management bandwidth as its operations expand.

Jain will continue to report to the MD & CEO and will remain classified as a Senior Management Personnel (SMP) of the bank.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

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