AU Small Finance Bank Posts Strong Q3 With NIM at 5.7%

AU Small Finance Bank Ltd. has delivered a strong performance in the December quarter (Q3 FY26), reinforcing its position as one of India’s leading small finance banks. The bank’s net interest margin (NIM) rose to 5.7%, reflecting improved lending efficiency and robust deposit mobilization.

Profit after tax surged 26% year-on-year to ₹668 crore, driven by a 15.7% YoY increase in net interest income and strong growth in both deposits and advances. Deposits grew 23.3% YoY to ₹1.38 lakh crore, while loans expanded 19.3% YoY to ₹1.30 lakh crore. The bank also highlighted its continued focus on digital transformation and customer-centric initiatives, alongside stable asset quality.

Key Highlights

• Net Interest Margin (NIM): 5.7% in Q3 FY26 (up 25 bps QoQ).
• Profit After Tax (PAT): ₹668 crore, up 26% YoY.
• Deposit Growth: 23.3% YoY to ₹1.38 lakh crore.
• Loan Growth: 19.3% YoY to ₹1.30 lakh crore.
• Net Interest Income (NII): Up 15.7% YoY.
• Asset Quality: Stable, with strong risk management practices.
• Strategic Focus: Digital expansion, inclusive growth, and governance enhancements.

AU Small Finance Bank’s Q3 results underscore its resilience and growth trajectory, positioning it strongly in India’s evolving financial services landscape.

Sources: MSN Money, InvestyWise, AU Small Finance Bank Quarterly Reports.