AU Small Finance Bank on Saturday (October 24, 2026) reported a 53% surge in net profit at ₹858 crore for the second quarter ended September 30, 2026 on the back of improvement in interest income. The lender had earned a net profit of ₹561 crore in the year-ago period.

“Total income rose to ₹6,382 crore in the quarter under review from ₹5,224 crore in the same period a year ago,” AU Small Finance Bank said in a regulatory filing. Interest income increased to ₹5,612 crore as against ₹4,511 crore in the corresponding second quarter of the previous year.

Net interest income of the bank improved to ₹2,820 crore in the July-September quarter, from ₹2,144 crore in the September quarter of 2025, registering a growth of 32%. Net interest margin increased to 5.8% from 5.5% at the end of September 2025.

Asset quality of the bank also improved with gross non-performing assets (NPAs) declining to 1.99% of gross advances at the end of the September quarter 2026, as against 2.41% a year ago.

Net NPAs or bad loan too moderated to 0.81%, as against 0.88% in the year-ago period. However, the Capital Adequacy Ratio of the bank decreased to 18.54%, from 18.78% at the end of September 2025.

“This quarter’s performance is a reflection of the institution we are steadily building, one that combines growth with profitability, and ambition with prudence,” AU Small Finance Bank MD & CEO Sanjay Agarwal said.

“The balanced growth of the franchise, improving profitability and stable asset quality reinforce confidence that the foundations for sustained, long-term performance are firmly in place,” he added.