AU Small Finance Bank (AUBANK) investor relations material

Executive summary

• Entered 10th financial year with a diversified, resilient, and scalable franchise, supported by disciplined execution and strategic focus.

• Achieved strong growth in a seasonally soft Q1'FY27, with deposits up 24% YoY and gross loan portfolio up 23% YoY, outpacing private sector peers.

• PAT rose 37% YoY to ₹796 crore, with annualized RoA at 1.7% and RoE at 15.6%.

• Leadership strengthened with elevation of Deputy CEO and new appointments in risk and technology.

• Unaudited financial results for the quarter ended June 30, 2026, were approved by the Board and reviewed by statutory auditors with an unmodified opinion.

Financial highlights

• Deposits grew 24% YoY; loan portfolio up 23% YoY; net interest income grew 32% YoY to ₹2,695 crore.

• PAT rose 37% YoY to ₹796 crore; core PPoP up 41% YoY; operating profit before provisions at ₹1,43,547.43 lakh.

• Net interest margin increased by 47 bps YoY to 5.9%; cost of funds at 6.48%; ROA at 1.7%, ROE at 15.6%.

• Credit cost (inc. CGFMU) declined by 54 bps YoY to 0.8%; provisions down 30% YoY to ₹371 crore.

• Total income for Q1 FY27 was ₹5,99,195.79 lakh, up from ₹5,18,904.91 lakh YoY.

Outlook and guidance

• Focus on accelerating deposit franchise, strengthening core lending, leveraging technology and AI for efficiency, and disciplined risk management.

• Targeting sustainable growth at 2–2.5x India's nominal GDP over the next decade.

• Expect cost-to-assets ratio to improve on a full-year basis as operating leverage continues.

• Ongoing focus on expanding digital and AI capabilities to drive efficiency and growth.

• The bank is in the process of transitioning to a Universal Bank, with in-principle RBI approval and final license application submitted.