$AUBANK Q1 profit jumps 37% to ₹796 crore on lower provisions and higher margins

Synopsis: $AUBANK posted a strong set of Q1 FY27 numbers, with net profit rising 37% year-on-year to ₹796 crore, aided by lower provisioning expenses, robust loan growth, and an improvement in net interest margins. $AUBANK (AU SFB) reported a 37% year-on-year increase in net profit to ₹796 crore for the quarter ended June 2026, driven by reduced credit costs and a healthy expansion in net interest margin (NIM). The bank had recorded a net profit of ₹581 crore in the same quarter last year and ₹832 crore in the preceding quarter. The lender, which is moving towards its conversion into a universal bank, continued to deliver strong business growth despite a challenging external environment. According to Executive Director Vivek Tripathi, the June quarter was among the bank's strongest first-quarter performances in recent years. He noted that AU SFB achieved more than 20% of its annual business target during the quarter, compared with the typical 15% contribution generally seen in the seasonally slower first quarter. Tripathi highlighted that credit demand remained resilient despite geopolitical uncertainties, supported by encouraging economic indicators such as rising GST collections, e-way bill generation, and other high-frequency data points. For the quarter, core net interest income (NII) rose 32% to ₹2,695 crore, supported by 23% growth in advances and a 47-basis-point improvement in NIM to 5.9%. The combination of stronger margins, sustained loan growth, and lower provisions helped the bank deliver a solid earnings performance during the period. Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.