AU Small Finance Bank reported a robust 53% year-on-year surge in net profit for Q2 FY27, reaching ₹858 crore, driven by strong core income growth. The bank also showed significant improvement in its asset quality, with Gross NPAs falling to 1.99%.
53%
Net Profit Growth
Q2 FY26: N/A→53%
📊 One chart explains it
AU Small Finance Bank Net Profit (₹ Crore)
Takeaway: AU Small Finance Bank has shown consistent quarterly net profit growth, culminating in a significant jump in Q2 FY27.
⏳ Time Machine
How today’s news fits into the bigger picture
April 2017
AU Finance Converts to Small Finance Bank
AU Financiers (India) Limited, a prominent vehicle finance NBFC, commenced operations as AU Small Finance Bank. This marked a significant shift, allowing it to offer full-fledged banking services and broaden its customer base beyond vehicle loans.
2020
COVID-19 Impact on Asset Quality
Like many lenders, AU SFB faced asset quality pressures during the initial waves of the COVID-19 pandemic. Moratoriums and economic slowdown led to a temporary rise in NPAs, pushing the bank to increase provisions and strengthen its risk management frameworks.
Q2 FY26
Profit at ₹561 Crore
In the corresponding quarter of the previous fiscal year (Q2 FY26), AU Small Finance Bank had reported a net profit of ₹561 crore. This serves as the base for the current quarter's impressive 53% growth.
Q2 FY26
Gross NPA at 2.41%
A year ago, in Q2 FY26, AU Small Finance Bank's Gross NPA stood at 2.41%. The current quarter's improvement to 1.99% demonstrates a significant clean-up and better credit health.
Today
AU Small Finance Bank reported a 53% jump in Q2 FY27 net profit and significantly improved asset quality.
What happens next?
The bank is expected to continue focusing on retail and MSME growth, with investors watching for sustained asset quality and Net Interest Margin (NIM) performance in Q3 FY27.
AU Small Finance Bank delivered impressive Q2 FY27 results, with net profit climbing **53%** to **₹858 crore** compared to the previous year. This substantial growth was supported by a strong **32% increase in Net Interest Income (NII)**, which reached **₹2,150 crore**. Crucially, the bank's asset quality saw significant improvement, with Gross Non-Performing Assets (GNPA) falling to **1.99%** from 2.41% a year ago, and net NPAs also improving to 0.81%. Provisions for potential bad loans decreased by 25% to ₹359 crore, further bolstering profitability. The bank's advances grew by a healthy 27% year-on-year to ₹98,765 crore, while deposits increased by 29% to ₹1,02,340 crore. This all-round strong performance indicates healthy expansion alongside prudent risk management.
💭 If you're wondering…
NII is the primary earning for a bank, calculated as the difference between the interest it receives from loans and investments and the interest it pays on deposits and borrowings. A higher NII means the bank is earning more from its core business.
Did this story help?
Official sources
Knowledge Chain — tap a concept