📊 AU Small Finance Bank Q2 FY2025-26 Financial Summary
Here’s a comparison of Q2 FY2025-26, Q1 FY2025-26, and Q2 FY2024-25 financials:
| Particulars | Q2 FY2025-26 | Q1 FY2025-26 | Q2 FY2024-25 |
|---|---|---|---|
| Net Profit (PAT) | ₹561 Cr | ₹581 Cr | ₹571 Cr |
| Total Income | ₹2,857 Cr | ₹2,855 Cr | ₹2,622 Cr |
| Operating Expenses | ₹1,647 Cr | ₹1,312 Cr | ₹1,478 Cr |
| Provisions | ₹481 Cr | ₹533 Cr | ₹373 Cr |
| Gross NPA | 2.41% | 2.47% | 2.47% |
| Net NPA | 0.88% | 0.88% | 0.88% |
Source: AU Small Finance Bank Q2 FY2025-26 Results (Business Standard)
🔍 Financial Performance Analysis
⚡ 1. Slight Decline in Net Profit
The bank posted a net profit of ₹561 crore in Q2 FY2025-26, which is 2% lower than the same quarter last year. This decline is primarily due to higher provisions and operating expenses.
💰 2. Income Growth
Total income increased to ₹2,857 crore, representing a 9% YoY growth, driven by improvements in interest income and non-interest income.
📉 3. Increase in Provisions
Provisions rose to ₹481 crore, 29% higher than the same quarter last year, mainly due to higher credit costs in unsecured loans.
🏦 4. Asset Quality
Gross NPA stood at 2.41% and Net NPA at 0.88%, remaining stable compared to the previous quarter. This indicates that the bank’s asset quality remains strong and consistent.
🗣️ Management Guidance and Future Outlook
AU Small Finance Bank management provided the following strategic guidance:
Focus on improving unsecured loan segments.
Expansion in digital banking and branch network.
Cost control and operational efficiency.
The management emphasized that these measures are expected to strengthen the bank’s financial performance in upcoming quarters.
✅ Conclusion
Q2 FY2025-26 performance of AU Small Finance Bank is mixed:
Slight decline in net profit
Strong growth in total income
Stable asset quality
Management strategies support future growth
For investors and analysts, this quarter demonstrates the bank’s strong operational capability and financial discipline.
