$AUBANK Finance Bank Q1 Results: Net profit surges 37% to ₹796 crore as NIM strengthens, provisions ease

Synopsis: $AUBANK delivered a robust performance in the June quarter of FY27, with net profit rising 37% year-on-year to ₹796 crore, supported by lower provisioning, healthy loan growth, and an improvement in net interest margin (NIM). AU Small Finance Bank (AU SFB) on Saturday reported a 37% year-on-year rise in net profit to ₹796 crore for the June quarter, driven by reduced credit provisions and a significant expansion in net interest margin (NIM). The bank had posted a net profit of ₹581 crore in the corresponding quarter last year and ₹832 crore in the preceding March quarter. The lender, which is steadily progressing toward its transition into a universal bank, continued to witness healthy business momentum across key segments during the quarter. Executive Director Vivek Tripathi said the June quarter marked one of the strongest first-quarter performances in recent years, with the bank achieving over 20% of its annual business target in the first three months of FY27, compared with the usual 15% contribution typically seen during the seasonally weaker opening quarter. He added that customer demand remained resilient despite geopolitical uncertainties, with broader economic indicators such as GST collections, e-way bill generation, and other high-frequency data reflecting sustained economic activity and supporting business growth. During the quarter, core net interest income (NII) increased 32% year-on-year to ₹2,695 crore, aided by 23% growth in the loan book and a 47-basis-point expansion in net interest margin to 5.9%. The combination of strong credit growth, improved margins, and lower provisioning helped the bank deliver healthy earnings while maintaining its growth trajectory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.