AU Small Finance Bank (AUBANK) investor relations material

Business model and growth strategy

• Focus on a sustainable, retail-led, tech-driven, and customer-centric business model with strong governance.

• Achieved 45% CAGR in deposits and 34% CAGR in advances from FY18-26, maintaining stable margins and robust profitability.

• Asset quality remains strong with GNPA and NNPA ratios consistently low and over 90% of the loan book secured.

• Diversified product suite includes deposits, retail and commercial loans, wealth management, and insurance, all enabled by digital channels.

• Strategic investments in distribution, technology, and brand to sustain growth and prepare for Universal Bank transition.

Deposit and liability franchise

• Liability franchise is granular and stable, with CASA ratio improving and cost of funds declining over time.

• Pan-India branch network with a focus on urban and high-potential metro markets, targeting specialized segments.

• Strategic initiatives include adding ~100 liability branches annually and leveraging omnichannel approaches for customer engagement.

• Enhanced brand recall and deeper regional engagement support deposit growth.

Asset diversification and loan growth

• Well-diversified asset book with a mix of vintage and new products, including wheels, mortgages, micro business loans, gold loans, and personal loans.

• Retail banking forms about 74% of total loan assets, with 90% of business secured.

• Expansion into new states and increased distribution support pan-India growth.

• Sustainable loan growth targeted at 2.0-2.5x nominal GDP, with benefits expected from Universal Bank transition.