AU Small Finance Bank Q2 profit rises 53% to ₹858 crore
AU Small Finance Bank's net profit for the quarter ended September 30, 2026 rose 53%, according to a report published by Moody's.
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what happened
Net profit at India's AU Small Finance Bank rose 53% to ₹858 crore in the quarter ended September 30, 2026, up from ₹561 crore a year earlier. Moody's reported the figures, which the bank had disclosed in a regulatory filing on Saturday, citing better interest income as the main driver.
Total income climbed to ₹6,382 crore from ₹5,224 crore. Interest income reached ₹5,612 crore compared with ₹4,511 crore, and net interest income grew 32% to ₹2,820 crore from ₹2,144 crore. Net interest margin widened to 5.8% from 5.5%.
Asset quality metrics also moved in the right direction. Gross NPAs stood at 1.99% of gross advances against 2.41% a year earlier, while net NPAs eased to 0.81% from 0.88%. The capital adequacy ratio fell to 18.54% from 18.78%. Managing Director and CEO Sanjay Agarwal said the quarter reflected growth combined with profitability and prudence.
why it matters
The key combination for investors is faster interest income alongside lower bad loans, even as the capital adequacy ratio slipped slightly. This is one lender's report, but it offers a read on how smaller Indian banks are managing margins and loan quality.
market impact
Indian banks: strong earnings from one lender support investor interest in the small-bank segment
tags
instruments
sources
- AU Small Finance Bank Q2 profit jumps 53% to ₹858 cr — Moody's, 24 October 2026 at 11:49 UTC
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