AU SFB reports strong Q3 with profit, NII up 26% & higher than expected

AU Small Finance Bank reported a solid operating performance for the December quarter of FY26 on Tuesday, January 20, with net profit rising 26.3% year-on-year to ₹667.6 crore, compared with ₹528 crore in the year-ago period, driven by strong growth in core income.

Net interest income (NII) also grew 26.3% year-on-year to ₹2,341.3 crore, from ₹2,023 crore in Q3FY25, reflecting healthy loan growth and stable margins. The bank's asset quality showed marginal improvement, with gross NPAs easing to 2.30% from 2.41% sequentially, while net NPAs remained flat at 0.88%.

On expectations, the bank’s performance came in ahead of estimates, with net profit exceeding the CNBC-TV18 poll of ₹654 crore and NII topping the poll estimate of ₹2,284 crore, underscoring better-than-anticipated earnings momentum for the quarter.

Earlier, AU SFB  signed an agreement with the Institute of Company Secretaries of India (ICSI)

to offer an exclusive suite of banking and credit card solutions tailored for company secretaries across the country.

Shares of the bank ended 1.93% lower at ₹1,001.25 ahead of the result announcement on Tuesday. The stock has gained 32.99% in the last six months.