Below is a structured extraction and summary of the relevant and actionable financial information from the AU Small Finance Bank Limited’s unaudited financial results for the quarter and half year ended September 30, 2025, along with auditor’s notes, segment information, and other disclosures.
1. Auditor’s Note
- The joint statutory auditors (M S K A & Associates and Mukund M. Chitale & Co.) have issued a Limited Review Report on the unaudited financial results.
- The report contains an unmodified conclusion (i.e., no qualifications or concerns).
- The auditors confirm the results are prepared in accordance with applicable accounting standards, RBI guidelines, and SEBI regulations.
- Pillar 3 disclosures (Basel II/III related ratios like leverage ratio, liquidity coverage ratio, NSFR) are disclosed on the Bank’s website and have not been reviewed by auditors.
- No audit opinion is expressed as this is a limited review.
- No qualifications, reservations, or issues noted.
2. Financial Performance
Key Financials (₹ in lakh)
| Particulars | Q2 FY26 (30.09.2025) | Q1 FY26 (30.06.2025) | Q2 FY25 (30.09.2024) | H1 FY26 (30.09.2025) | H1 FY25 (30.09.2024) | FY25 (31.03.2025) Audited |
|---|
| Interest Earned | 4,51,128.30 | 4,37,844.30 | 3,91,061.24 | 8,88,972.60 | 7,67,965.42 | 16,06,373.09 |
| - On Advances | 3,78,623.00 | 3,66,491.85 | 3,27,962.67 | 7,45,114.85 | 6,37,160.81 | 13,36,834.71 |
| - Income on Investments | 64,439.49 | 64,496.09 | 50,820.05 | 1,28,935.58 | 1,05,130.08 | 2,23,817.60 |
| Other Income | 71,258.25 | 81,060.61 | 63,796.45 | 1,52,318.86 | 1,14,723.55 | 2,52,631.11 |
| Total Income | 5,22,386.55 | 5,18,904.91 | 4,54,857.69 | 10,41,291.46 | 8,82,688.97 | 18,59,004.20 |
| Interest Expended | 2,36,686.74 | 2,33,377.19 | 1,93,625.01 | 4,70,063.93 | 3,78,470.57 | 8,05,214.94 |
| Operating Expenses | 1,64,727.77 | 1,54,306.62 | 1,48,055.75 | 3,19,034.39 | 2,95,867.13 | 5,95,721.53 |
| - Employee Cost | 91,871.44 | 86,552.64 | 78,549.08 | 1,78,424.08 | 1,57,562.63 | 3,14,776.04 |
| - Other Operating Expenses | 72,856.33 | 67,753.98 | 69,506.67 | 1,40,610.31 | 1,38,304.50 | 2,80,945.49 |
| Total Expenditure (excl. provisions) | 4,01,414.51 | 3,87,683.81 | 3,41,680.76 | 7,89,098.32 | 6,74,337.70 | 14,00,936.47 |
| Operating Profit before Provisions | 1,20,972.04 | 1,31,221.10 | 1,13,176.93 | 2,52,193.14 | 2,08,351.27 | 4,58,067.73 |
| Provisions & Contingencies | 48,082.92 | 53,330.66 | 37,298.80 | 1,01,413.58 | 65,583.76 | 1,79,262.32 |
| Profit before Tax | 72,889.12 | 77,890.44 | 75,878.13 | 1,50,779.56 | 1,42,767.51 | 2,78,805.41 |
| Tax Expense | 16,802.09 | 19,804.62 | 18,757.09 | 36,606.71 | 35,389.35 | 68,212.75 |
| Net Profit | 56,087.03 | 58,085.82 | 57,121.04 | 1,14,172.85 | 1,07,378.16 | 2,10,592.66 |
| Paid-up Equity Capital | 74,611.12 | 74,519.30 | 74,353.73 | 74,611.12 | 74,353.73 | 74,453.05 |
| Basic EPS (₹) | 7.52 | 7.80 | 7.68 | 15.32 | 14.45 | 28.32 |
| Diluted EPS (₹) | 7.48 | 7.78 | 7.65 | 15.24 | 14.39 | 28.24 |
| Capital Adequacy Ratio (Basel II) | 18.78% | 19.42% | 18.51% | 18.78% | 18.51% | 20.06% |
3. Detailed Notes / Management Commentary
- The financial results have been prepared in accordance with Indian Accounting Standards, RBI guidelines, and SEBI regulations.
- No change in significant accounting policies compared to FY25.
- The Bank has received in-principle RBI approval for voluntary transition to Universal Bank on August 7, 2025, valid for 18 months, subject to promoter shareholding transfer to NOFHC.
- Employee Stock Options: During Q2 FY26 and H1 FY26, the Bank allotted 9,18,232 and 15,80,691 equity shares respectively under ESOP schemes.
- No exceptional items reported.
- No acquisition of stressed loans or loans not in default during H1 FY26.
- Resolution Framework 1.0 and 2.0 related exposures and slippages disclosed with minimal slippages and write-offs.
- Pillar 3 disclosures (Leverage Ratio, LCR, NSFR) are available on the Bank’s website but not reviewed by auditors.
- No subsidiaries or associates; hence, only standalone financials are presented.
- No material adjustments or caveats reported.
4. Segment Information
| Segment | Q2 FY26 Revenue | Q1 FY26 Revenue | Q2 FY25 Revenue | H1 FY26 Revenue | H1 FY25 Revenue | FY25 Revenue |
|---|
| Treasury | 77,243.53 | 98,024.05 | 59,491.44 | 1,75,267.58 | 1,16,393.60 | 2,56,493.11 |
| Retail Banking | 3,81,840.16 | 3,65,189.21 | 3,49,133.16 | 7,47,029.37 | 6,76,730.59 | 14,00,121.39 |
| - Digital Banking | 0.03 | 0.03 | 0.06 | 0.06 | 0.10 | 0.18 |
| - Other Retail Banking | 3,81,840.13 | 3,65,189.18 | 3,49,133.10 | 7,47,029.31 | 6,76,730.49 | 14,00,121.21 |
| Wholesale Banking | 50,302.25 | 47,950.49 | 36,829.67 | 98,252.74 | 72,629.02 | 1,64,318.58 |
| Other Banking Operations | 13,000.61 | 7,741.16 | 9,403.42 | 20,741.77 | 16,935.76 | 38,071.12 |
| Total Income | 5,22,386.55 | 5,18,904.91 | 4,54,857.69 | 10,41,291.46 | 8,82,688.97 | 18,59,004.20 |
Segment Profit Before Tax (₹ in lakh)
| Segment | Q2 FY26 | Q1 FY26 | Q2 FY25 | H1 FY26 | H1 FY25 | FY25 |
|---|
| Treasury | 7,014.99 | 28,876.68 | 7,740.19 | 35,891.67 | 11,709.20 | 29,531.82 |
| Retail Banking | 42,497.04 | 27,020.64 | 49,435.07 | 69,517.68 | 95,831.97 | 1,67,423.64 |
| - Digital Banking | (11.98) | (4.06) | (5.10) | (16.04) | (9.80) | (21.67) |
| - Other Retail Banking | 42,509.02 | 27,024.70 | 49,440.17 | 69,533.72 | 95,841.77 | 1,67,445.31 |
| Wholesale Banking | 11,199.65 | 15,075.13 | 10,016.50 | 26,274.78 | 19,677.44 | 46,951.26 |
| Other Banking Operations | 12,177.44 | 6,917.99 | 8,686.37 | 19,095.43 | 15,548.90 | 34,898.69 |
| Total Profit Before Tax | 72,889.12 | 77,890.44 | 75,878.13 | 1,50,779.56 | 1,42,767.51 | 2,78,805.41 |
5. Capital Expenditure, Projects, and Corporate Activity
- Capital Expenditure:
- Purchase of Fixed Assets during H1 FY26: ₹54,291.09 lakh (up from ₹13,381.51 lakh in H1 FY25).
- Proceeds from sale of fixed assets: ₹279.12 lakh in H1 FY26.
- Investments in HTM securities (Net): ₹(92,584.51) lakh in H1 FY26 (down from ₹(3,33,960.39) lakh in H1 FY25).
- Borrowings: Net repayment of ₹1,34,086.04 lakh in H1 FY26 (compared to net repayment of ₹46,252.92 lakh in H1 FY25).
- Employee Stock Options: Cash inflow of ₹6,314.01 lakh in H1 FY26 from exercise of stock options.
- Dividend Paid: ₹7,451.93 lakh in H1 FY26 (similar to previous year).
- No acquisitions, disposals, impairments, or restructuring efforts reported in this period.
- The Bank is in the process of transitioning to a Universal Bank with RBI’s in-principle approval.
6. Standalone vs Consolidated
- The Bank does not have any subsidiaries, associates, or joint ventures; hence, only standalone financials are presented.
- Consolidated results are not applicable.
Additional Key Points
- Asset Quality:
- Gross NPAs as of 30.09.2025: ₹2,83,533.92 lakh (up from ₹1,90,168.88 lakh in Q2 FY25).
- Slippages and recoveries under RBI’s Resolution Framework disclosed with minimal slippages and write-offs.
- Capital Adequacy: CAR at 18.78% as of Q2 FY26, slightly down from 20.06% at FY25 end but stable and above regulatory minimums.
- Deposits: ₹1,32,50,922.60 lakh as of 30.09.2025, up from ₹1,09,69,314.92 lakh as of 30.09.2024.
- Advances: ₹1,15,70,498.25 lakh as of 30.09.2025, up from ₹94,83,818.04 lakh as of 30.09.2024.
- Cash and Balances with RBI: ₹5,55,060.40 lakh as of 30.09.2025, down from ₹7,34,471.56 lakh as of 30.09.2024.
- Reserves & Surplus: ₹17,39,919.94 lakh as of 30.09.2025, increased from ₹15,20,448.58 lakh as of 30.09.2024.
- Employee Stock Options Outstanding: Increased to ₹17,091.59 lakh as of 30.09.2025 from ₹9,320.20 lakh as of 30.09.2024.
Summary for Investment Analysis Team
| Aspect | Highlights / Actionable Points |
|---|
| Auditor’s Note | Unmodified limited review report; no qualifications or concerns. |
| Financial Performance | Q2 FY26 net profit ₹56,087 lakh, stable vs Q2 FY25; H1 FY26 net profit ₹1,14,173 lakh, up 6.4% YoY. EPS steady. |
| Revenue Growth | Total income up 14.9% YoY in Q2; advances and deposits show strong growth. |
| Margins & Profitability | Operating profit before provisions increased; provisions higher reflecting cautious stance; CAR healthy at 18.78%. |
| Asset Quality | Gross NPAs increased but manageable; slippages under resolution framework low; no stressed loan acquisitions. |
| Segment Performance | Retail banking dominates revenue and profit; treasury segment volatile but profitable; wholesale growing. |
| Capital & Liquidity | CAR remains strong; borrowings reduced; significant capex underway. |
| Corporate Actions | RBI in-principle approval for Universal Bank transition; ESOP exercises continue; no mergers or acquisitions. |
| Standalone Only | No subsidiaries; results are standalone. |
This detailed extraction should assist the investment analysis team in understanding the Bank’s current financial health, operational performance, and strategic outlook based on the latest quarterly and half-year results.