Important StoriesKotak Bank Q2 profit rises 29%, beats estimatesRamco Systems Q2 profit plunges on higher expensesApple’s iPhone Duo hits stores in face of short supply and high demandBoeing supplier dispute has halted 777 freighter production for two monthsCivil society group raises concerns over composition of expert committee on UCPMPFollow UsFOLLOW US ON WHATSAPPHomeGO BACK TO HOME THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. AU Small Finance Bank Q2 profit jumps 53% to ₹858 cr AU Small Finance Bank’s total income rises to ₹6,382 crore in Q2 FY27 from ₹5,224 crore in the same period a year ago By PTI Updated - October 24, 2026 at 04:54 PM. | New Delhi, October 24 ×ShareWhatsAppXFacebookLinkedInMessengerRedditMailhttps://www.thehindubusinessline.com/money-and-banking/au-small-finance-bank-q2-profit-jumps-53-to-858-cr/article71619821.eceCopy Interest income increased to ₹5,612 crore as against ₹4,511 crore in the corresponding second quarter of the previous year.

AU Small Finance Bank on Saturday reported a 53 per cent surge in net profit at ₹858 crore for the second quarter ended September 30, 2026 on the back of improvement in interest income.

The lender had earned a net profit of ₹561 crore in the year-ago period.

Total income rose to ₹6,382 crore in the quarter under review from ₹5,224 crore in the same period a year ago, AU Small Finance Bank said in a regulatory filing.

Interest income increased to ₹5,612 crore as against ₹4,511 crore in the corresponding second quarter of the previous year.

Net interest income of the bank improved to ₹2,820 crore in the July-September quarter, from ₹2,144 crore in the September quarter of 2025, registering a growth of 32 per cent.

Net interest margin increased to 5.8 per cent from 5.5 per cent at the end of September 2025.

Asset quality of the bank also improved with gross non-performing assets (NPAs) rising to 1.99 per cent of gross advances at the end of the September quarter 2026, as against 2.41 per cent a year ago.

Net NPAs or bad loan too moderated to 0.81 per cent, as against 0.88 per cent in the year-ago period.

However, the Capital Adequacy Ratio of the bank decreased to 18.54 per cent, from 18.78 per cent at the end of September 2025.

"This quarter's performance is a reflection of the institution we are steadily building, one that combines growth with profitability, and ambition with prudence," AU Small Finance Bank MD & CEO Sanjay Agarwal said.

The balanced growth of the franchise, improving profitability and stable asset quality reinforce confidence that the foundations for sustained, long-term performance are firmly in place, he added.

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