AU Small Finance Bank Q3 Update: Advances and Deposits grow nearly 20% from last year

AU Small Finance Bank Ltd on Sunday, January 4, reported healthy growth across key balance sheet metrics for the quarter ended December 31, 2025 (Q3 FY26), driven by steady traction in deposits and advances.

As per the bank’s provisional business update shared to the exchanges on Sunday, January 4, total deposits rose 23.3% year-on-year to ₹1.38 lakh crore as of December 31, 2025, compared with ₹1.12 lakh crore in the year-ago period.

CASA deposits grew 16.1% to ₹39,950 crore during the quarter, although

the CASA ratio moderated to 28.9% from 30.6% a year earlier.

Gross advances increased 24% year-on-year to ₹1.25 lakh crore at the end of the December quarter, up from ₹1.01 lakh crore in Q3 FY25. Including the securitised and assigned loan portfolio, the bank’s gross loan book stood at ₹1.30 lakh crore, marking a 19.3% rise from ₹1.09 lakh crore a year ago.

The securitised and assigned portfolio declined to ₹4,690 crore as of December 31, 2025, from ₹7,932 crore in the corresponding period last year.

The exchange filing said the figures are provisional in nature and are being disclosed ahead of the formal announcement of its financial results for the quarter.

Q2 performance

AU Small Finance Bank reported a year-on-year decline in net profit for the first time in six quarters, as higher provisioning weighed on earnings, although the results came in ahead of Street expectations.

Net profit for the July–September quarter (Q2 FY26) fell 1.8% to ₹561 crore from ₹571 crore a year earlier, but exceeded the CNBC-TV18 poll estimate of ₹520 crore. On a sequential basis, profit declined 3.4%.

Total income rose nearly 15% year-on-year to ₹5,224 crore in Q2 FY26, while provisions surged 29% to ₹481 crore. For the first half of FY26, the lender’s net profit increased 6.3% year-on-year to ₹1,142 crore.

Shares of AU Small Finance Bank Ltd ended marginally lower on Friday, January 2, by 0.01% at ₹999.40 on the NSE.

Also Read: Ujjivan Small Finance Bank Q3 Update: Deposits rise 22%, loan book grows 22%