AU Small Finance Bank stock: Q2 profit rises 53% to INR 858 crore
Published on 11/10/2026 at 03:07 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSWhat Q2 results signal
- Net interest income increased as interest income strengthened during the July-September quarter.
- Deposit and loan growth remained strong, while gross and net bad-loan ratios improved year over year.
- Margin and capital trends remain important watch points for the lender.
AU Small Finance Bank reported a sharp increase in second-quarter profit on Saturday, October 24, 2026. According to Business Standard, net profit reached INR 858 crore in the quarter ended September 30, compared with INR 561 crore a year earlier.
Interest income supports earnings
Total income rose to INR 6,382 crore from INR 5,224 crore in the year-ago quarter, while interest income increased to INR 5,612 crore from INR 4,511 crore. Net interest income climbed to INR 2,820 crore from INR 2,144 crore, an increase of 32 percent.
Net interest margin reached 5.8 percent, up from 5.5 percent a year earlier. The improvement in earnings came alongside higher operating scale, although the bank's capital adequacy ratio declined to 18.54 percent from 18.78 percent.
Asset quality improves year over year
Gross non-performing assets fell to 1.99 percent of gross advances from 2.41 percent in the comparable quarter. Net non-performing assets declined to 0.81 percent from 0.88 percent.
The results put growth and credit quality at the center of the investment case. Investors will also watch whether the bank can preserve margins and capital strength as its balance sheet expands.
Business model and competitive position
AU Small Finance Bank is an Indian small finance bank serving customers through deposits, lending and digital banking services. The bank grew from a vehicle-finance business into a lender with operations across 21 Indian states and four union territories, according to its investor information.
Its closest small-finance-bank peers include Equitas Small Finance Bank and Ujjivan Small Finance Bank, while larger diversified private banks such as HDFC Bank compete for deposits and retail customers. AU occupies a specialized position between regional financial inclusion lenders and broader private-sector banking franchises.
AU Small Finance Bank at a glance
- Company: AU Small Finance Bank Limited
- ISIN: INE949L01017
- Reporting period: Second quarter of fiscal year 2027, ended September 30, 2026
- Net profit: INR 858 crore
- Net interest income: INR 2,820 crore
- Gross NPA: 1.99 percent
- Net NPA: 0.81 percent
Indian banking stocks provide the relevant market context for AU Small Finance Bank; see the BSE Sensex theme.
