AU Small Finance Bank on Saturday reported a 53 per cent surge in net profit to Rs 858 crore for the second quarter ended September 30, 2026 — yaani about Rs 8.58 billion — helped by higher interest income, PTI reported. The lender had earned a net profit of Rs 561 crore in the same quarter a year ago.

Source: The Hindu BusinessLine (PTI)

Total income rose to Rs 6,382 crore from Rs 5,224 crore a year ago, while interest income increased to Rs 5,612 crore from Rs 4,511 crore, the bank said in its regulatory filing. Net interest income improved 32 per cent to Rs 2,820 crore from Rs 2,144 crore, and the net interest margin widened to 5.8 per cent from 5.5 per cent.

Source: EquityBulls (bank results filing)

Asset quality improves

Gross non-performing assets eased to 1.99 per cent of advances from 2.41 per cent a year ago, and net NPAs moderated to 0.81 per cent from 0.88 per cent. The capital adequacy ratio, however, slipped slightly 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, according to the PTI report. Core pre-provision operating profit grew 31 per cent to Rs 1,480 crore, EquityBulls reported from the bank's filing.