AU Small Finance Bank Limited has announced its unaudited financial results for the second quarter (Q2) and first half (H1) of the fiscal year 2027, showcasing a strong performance across key financial metrics. The bank reported a significant 53% year-on-year (YoY) increase in profit after tax (PAT) for Q2 FY27, reaching ₹858 crore, while its deposits and loans grew by 29% and 25% respectively.
In Q2 FY27, the bank’s core pre-provision operating profit (PPoP) increased by 31% YoY to ₹1,480 crore. The net interest income (NII) saw a 32% YoY rise to ₹2,820 crore, driven by an improved net interest margin (NIM) of 5.8%, up from 5.5% in the same quarter last year. The cost of funds decreased by 43 basis points to 6.41%, contributing to the bank’s profitability. Additionally, the gross non-performing assets (GNPA) ratio improved by 42 basis points to 1.99%, while the net NPA ratio was reduced to 0.81%.
For the first half of FY27, AU Small Finance Bank’s PAT grew by 45% YoY to ₹1,654 crore. The bank’s core PPoP for H1 FY27 increased by 36% YoY to ₹2,906 crore. The return on assets (RoA) and return on equity (RoE) stood at 1.7% and 15.8% respectively for H1 FY27, reflecting a stable financial position.
The bank’s deposit book reached ₹1,70,460 crore, marking a 28.6% YoY growth, while the gross loan portfolio expanded to ₹1,53,769 crore, a 25.1% increase from the previous year. The bank also enhanced its leadership team with the appointment of Mr. Anil Agarwal as Senior Executive Group Head for Commercial & Institutional Banking and Mr. Amol Padhye as Chief Risk Officer.
The financial results come amid a dynamic macroeconomic environment, with the bank focusing on deepening customer relationships and leveraging technology and AI for sustainable growth. The bank’s strong performance has been recognised by ICRA Ratings, which upgraded its long-term credit rating outlook to ‘Positive’ while reaffirming the rating at ‘AA’.
Analysts note that AU Small Finance Bank’s robust financial performance and strategic leadership appointments position it well for continued growth in a competitive banking landscape.
