Financial Performance FY 2025-26

AU Small Finance Bank delivered strong financial results with Profit After Tax increasing 25% Year-on-Year to ₹2,641 crore from ₹2,106 crore in FY25. Return on Assets improved to 1.6% from 1.5% and Return on Equity increased to 14.2% from 13.1%.

Balance Sheet Highlights:

  • Gross Loan Portfolio: ₹1,40,327 crore (21% YoY growth)
  • Total Deposits: ₹1,52,661 crore (23% YoY growth)
  • CASA Ratio: 28%
  • Balance Sheet Size: ₹1,91,797 crore (22% YoY growth)
  • Shareholders' Funds: ₹19,974 crore (16% YoY growth)

Asset Quality & Capital:

  • Gross NPA: 2.03% (improved from 2.28% in FY25)
  • Net NPA: 0.74% (stable)
  • Capital Adequacy Ratio (CRAR): 18.68% (Tier I: 16.9%)
  • Liquidity Coverage Ratio: 119.02% average for Q4 FY26

Strategic Developments & Merger

Universal Bank Transition: Received RBI's in-principle approval on August 7, 2025 for transition from Small Finance Bank to Universal Bank, with final application submitted in March 2026.

Fincare SFB Amalgamation: Completed amalgamation with Fincare Small Finance Bank with appointed date of April 1, 2024. Issued 7,35,25,352 equity shares at exchange ratio of 579 AU SFB shares for every 2,000 Fincare SFB shares, increasing paid-up capital to ₹742.69 crore.

Leadership Changes: RBI approved re-appointment of Mr. Sanjay Agarwal as MD & CEO for three years effective April 19, 2026. Mr. Vivek Tripathi appointed as Executive Director, while Mr. Uttam Tibrewal completed tenure as Whole-Time Director and continues as Deputy CEO.

Corporate Governance & Board Structure

The Bank maintained robust governance with 12 active board committees and significant board composition changes during FY26:

New Independent Directors: Appointed 5 new independent directors - Mr. Nandkumar Saravade, Mr. J.M. Prasad, Mr. N.S. Venkatesh, Mr. Satyajit Dwivedi, and Mr. Phani Shankar.

Committee Oversight:

  • Audit Committee met 11 times
  • Risk Management Committee met 9 times
  • Nomination and Remuneration Committee met 9 times
  • All committees functioned with detailed terms of reference

Remuneration: Executive directors received approved compensation with Mr. Sanjay Agarwal at ₹3.32 crore fixed pay plus variable components, while independent directors received sitting fees and annual compensation.

Business Performance & Expansion

Distribution Network: Expanded to 2,790 touchpoints across 21 states and 4 union territories, adding 334 net touchpoints including 78 liability branches.

Segment Performance:

  • Retail Banking: Wheels portfolio grew 27% YoY to ₹46,363 crore
  • Gold Loans grew 108% YoY to ₹3,941 crore
  • Commercial Banking grew 29% YoY to ₹30,968 crore
  • Digital Unsecured Loans declined 10% YoY to ₹2,949 crore with calibrated risk approach

Technology Initiatives: Launched AI-native Loan Origination System for Gold Loans and completed migration of erstwhile Fincare SFB's core banking system.

Dividend & Investor Relations

  • Board recommended dividend of ₹1 per share (10% of face value) for FY26
  • Zero pending investor complaints as of March 31, 2026
  • Shareholding pattern: 100% dematerialized with 90.67% held through NSDL

Regulatory Compliance & ESG

  • No major penalties from SEBI or stock exchanges
  • CSR expenditure: ₹35.4 crore with focus on education, skills development, and women empowerment
  • Green Fixed Deposits: ₹2,950+ crore mobilized and deployed into green assets
  • Maintained strong credit ratings: CRISIL AA+/Stable for fixed deposits, CRISIL AA/Stable for Tier II bonds