AU Small Finance Bank on Saturday reported a 53 per cent surge in net profit at ₹858 crore for the second quarter ended September 30, 2026 on the back of improvement in interest income.
The lender had earned a net profit of ₹561 crore in the year-ago period.
Total income rose to ₹6,382 crore in the quarter under review from ₹5,224 crore in the same period a year ago, AU Small Finance Bank said in a regulatory filing.
Interest income increased to ₹5,612 crore as against ₹4,511 crore in the corresponding second quarter of the previous year.
Net interest income of the bank improved to ₹2,820 crore in the July-September quarter, from ₹2,144 crore in the September quarter of 2025, registering a growth of 32 per cent.
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Net interest margin increased to 5.8 per cent from 5.5 per cent at the end of September 2025.
Asset quality of the bank also improved with gross non-performing assets (NPAs) rising to 1.99 per cent of gross advances at the end of the September quarter 2026, as against 2.41 per cent a year ago.
Net NPAs or bad loan too moderated to 0.81 per cent, as against 0.88 per cent in the year-ago period.
However, the Capital Adequacy Ratio of the bank decreased 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 & CEO Sanjay Agarwal said.
The balanced growth of the franchise, improving profitability and stable asset quality reinforce confidence that the foundations for sustained, long-term performance are firmly in place, he added.
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