AUBANK

AU Small Finance Bank has been one of the strongest performers among mid-sized private banking stocks over the last year. The bank continues to deliver healthy growth in deposits, advances, profitability, and asset quality improvement. Key Positives ✅ Strong Earnings Growth Q4 FY26 Net Profit jumped 65% YoY to ₹832 crore. Net Interest Income (NII) grew 23% YoY to ₹2,582 crore. ✅ Healthy Business Growth Deposits increased about 23% YoY. Advances grew around 25% YoY, indicating robust credit demand. ✅ Improving Asset Quality Gross NPA improved to approximately 2.03%, reflecting better loan book quality. ✅ Universal Bank Transition RBI's in-principle approval to transition from a Small Finance Bank to a Universal Bank is a major long-term catalyst. This can expand lending opportunities, customer base, and product offerings. Risks ⚠️ Valuation is no longer very cheap after the strong rally seen in the stock over the past year. Technical View Long-term trend remains bullish. Stock has significantly outperformed many banking peers over the last 12 months. Immediate support zone: ₹950–₹980 Strong support: ₹880–₹900 Resistance zone: ₹1,080–₹1,120