AU Small Finance Bank Q4 results: AU Small Finance Bank reported its earnings for the January-March quarter of the 2025-26 financial year (Q4 FY26) on Monday, April 27.
The bank posted a 65.15% year-on-year (YoY) surge in its net profit to ₹831.87 crore during the quarter under review, compared to ₹503.7 crore in the fourth quarter of the 2024-25 fiscal year (Q4 FY25).
Its net interest income (NII) stood at ₹2,582 crore in the March FY26 quarter, marking a 23% YoY jump from ₹2,094 crore in the year-ago period, supported by strong loan growth and expansion in margin, according to a regulatory filing.
Its net interest margin (NIM) expanded to 6% for the reporting quarter, as against 5.8% in Q4 FY25, primarily driven by lower cost of funds, and some seasonal benefits coming from higher recovery from non-performing assets (NPAs), tax refund, and lower day count in February.
Its asset quality improved, with Gross NPAs (GNPAs) contracting to 2.03% in the March FY26 quarter, from 2.30% in the quarter-ago period. Its Net NPAs (NNPAs) also improved to 0.74%, compared to 0.88% in the December quarter of FY26.
Furthermore, its slippages decreased by 17% QoQ to ₹659 crore during the reporting quarter, as against ₹791 crore in Q3 FY26 and ₹ 894 crore in Q4 FY25, led by improvement across asset classes.
The return on assets (ROA) and return on equity (ROE) for the quarter were at 1.8% and 17%, respectively.
Final dividend
AU Small Finance Bank’s board of directors recommended a dividend of ₹1 per equity share with a face value of ₹10 each fully-paid up, at 10% of the face value, out of net profit for the financial year ended March 31, 2026, subject to approval of shareholders at the ensuing Annual General Meeting (AGM) of the Bank.
“The dividend on equity shares will be paid/dispatched after the same is approved by the shareholders at the ensuing AGM of the Bank,” it stated.
Other approvals
Its board of directors also approved a resolution for the annual renewal of fundraising limits by way of qualified institutional placements (QIPs) and issuance of debt instruments.
The board approved the issuance of equity shares for an aggregate amount not exceeding ₹7,500 crore through private placement or qualified institutions placement (QIP) or preferential allotment or through a combination thereof or any other alternative mode, as may be considered appropriate, subject to approval of the shareholders.
Furthermore, it approved the issuance of debt instruments, including but not limited to Bonds and Non-Convertible Debentures (NCDs) or such other debt securities as may be permitted by RBI from time to time for an amount not exceeding ₹6,000 crore, in one or more tranches, subject to approval of the shareholders.
Out of the ₹6,000 crore, an amount up to ₹2,500 crore will be raised through Tier II bonds.
“The said approval shall remain valid for the period of twelve months from the date of shareholders’ approval,” it added.
What the management said
Commenting on the earnings, Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank, said: “It takes at least a decade to build the foundation of a strong bank and entering our tenth year is a deeply meaningful milestone for all of us at AU. Building a Forever Bank demands consistency in strategy, in execution and in values. FY2026 reflects exactly that.”
He added that the bank has strengthened its franchise, embedded technology into its core, and invested in every dimension that matters, like governance, leadership, distribution, and scale. This month, it launched its first Agentic AI platform and its first AI-native Loan Origination System on that platform, signalling its intent to fundamentally reimagine banking.
“The strength of our foundation and the quality of our franchise give me confidence that as we approach our Universal Banking milestone, we do so with clarity of purpose and conviction in our trajectory. We are deeply grateful to the Government of India, RBI and our other regulators, our customers, our shareholders, our team and every stakeholder who makes this journey possible,” Agarwal noted.
AU Small Finance Bank has a total market capitalisation of ₹77,866.73 crore as of April 27, 2026, according to data on the NSE.