AU Small Finance Bank Reports Strong Q2 Growth in Deposits and Advances

AU Small Finance Bank (AUSFB) posted robust provisional performance for the quarter ended September 30, 2025. Total deposits grew 20.8% YoY to ₹1,32,510 crore, while gross advances rose 22.4% YoY to ₹1,17,520 crore, reflecting strong credit demand and deposit mobilization. CASA deposits increased by 9.7% YoY to ₹38,960 crore, though the CASA ratio dipped to 29.4% from 32.4% a year ago, indicating a shift toward term deposits amid prevailing interest rate conditions. On a quarterly basis, deposits, advances, and CASA grew 3.8%, 5.3%, and 4.6% respectively. The gross loan portfolio (including securitized and assigned loans) expanded 17% YoY to ₹1,22,870 crore. The results highlight AUSFB’s strong growth momentum and expanding footprint in the small finance banking space. However, the decline in CASA ratio may warrant focus in coming quarters. Final results await review by auditors and the board.