AU Small Finance Bank Q3FY26 results: Net profit up 26% at ₹668 crore

Dy CEO Tibrewal steps down from board, will continue in current role

AU Small Finance Bank (AU SFB) on Tuesday reported a 26 per cent year-on-year (Y-o-Y) rise in net profit to ₹ 668 crore in third quarter of financial year 2025-26 (Q3FY26), supported by strong interest and other incomes and lower provisions.

 

Its net interest income (NII) grew 16 per cent Y-o-Y to ₹2,341 crore, aided by robust growth in gross loan portfolio. The net interest margin (NIM), a measure of profitability of banks, stood at 5.7 per cent in Q3, up 25 basis points (bps) over the preceding quarter, due to sharp reduction in cost of funds. Provisions of the bank were down 34 per cent Y-o-Y and 31 per cent sequentially to ₹331 crore in Q3FY26.

 

Its asset quality improved sequentially benefiting from normalisation in unsecured businesses and seasonal recovery in secured assets. Slippage of the bank reduced 13 per cent sequentially to ₹791 crore. Gross non-performing asset (GNPA) ratio of the bank stood at 2.3 per cent at the end of Q3, improving by 11 bps. Net NPAs stood at 0.88 per cent.  

 

Credit cost declined nearly 31 per cent sequentially to ₹331 crore with annualised credit cost for the quarter at 0.8 per cent of average assets.

 

Its gross loan portfolio was up 19.3 per cent Y-o-Y and 5.7 per cent sequentially to ₹1.29 trillion, and its deposit portfolio grew 23.3 per cent Y-o-Y to ₹1.38 trillion.

 

According to the bank, implementation of GST rate cuts and a robust festival season added momentum to underlying economic activity during the quarter, resulting in a meaningful pickup in credit demand. Higher auto sales, stronger consumer spending, and a revival in micro, small & medium enterprises and commercial activity supported banking sector credit growth.

 

Separately, the bank said Uttam Tibrewal, executive director and deputy chief executive officer of the bank, will cease to be a whole time director on the bank’s board, upon completion of his current tenure on April 18, 2026. Vivek Tripathi, chief credit officer, will be appointed as whole-time director (executive director) subject to RBI approval.

 

However, Tibrewal will continue in his capacity as deputy CEO and remain responsible for leading key business verticals including retail assets and liabilities. Alongside these responsibilities, he will devote increased time to on ground engagement to drive growth, strengthen customer relationships, and expand the Bank’s presence across newer geographies.

 

These changes are as part of the long term succession planning and roadmap for accelerating and consolidating leadership depth in the bank and to provide flexibility for future organizational requirements, the bank said.