### **AU Small Finance Bank Q1 FY26 Results: Strong Growth Momentum with Stable Fundamentals**

AU Small Finance Bank delivered a steady and resilient performance in Q1 FY26, reflecting its consistent growth strategy and operational discipline. The bank reported a **16% year-on-year increase in net profit** to ₹581 crore, supported by robust growth in net total income, which rose **18% to ₹2,855 crore**. Pre-provision operating profit (PPoP) grew **38% YoY** to ₹1,312 crore, highlighting operating leverage benefits and cost rationalization. Net Interest Income (NII) stood at ₹2,045 crore, up **6% YoY**, while Net Interest Margin (NIM) moderated to **5.4%**, reflecting the impact of rising deposit costs. Asset quality saw some deterioration, with Gross NPA rising to **2.47%** and Net NPA at **0.88%**, leading to higher provisions of ₹533 crore. However, the bank maintained a healthy **Provision Coverage Ratio (PCR) of 83%**. Deposits grew **31% YoY** to ₹1.28 lakh crore, with a stable **CASA ratio of 29.2%**, while advances rose **18% YoY** to ₹1.17 lakh crore. Management reaffirmed confidence in AU’s long-term growth strategy, citing strong customer acquisition, disciplined risk management, and continued focus on building a stable, retail-focused liability franchise. AU SFB remains well-positioned to navigate near-term headwinds while sustaining its growth trajectory.