MFI asset quality deterioration
Collection efficiency dropped to 98.3% and full-year credit cost for MFI is now expected at ~5% vs prior 3-4% guidance. Recovery pushed back by one quarter.
high · management_commentaryAU Small Finance Bank Limited — Q1 FY26
AU Small Finance Bank reported a 16% YoY PAT growth to INR 581 crore in Q1 FY26, with ROA at 1.5%.
neutral
medium
Financial stats pending filing verification
Risk Intelligence
Material risks this quarter
Concise cards keep the risk register scannable while preserving evidence-level context in the underlying quarter data.
Risks
Southern mortgage book stress
Credit cost elevated in the southern mortgage book (15% of total mortgages) due to transition issues post-Fincare merger. Management expects normalization by year-end.
medium · management_commentaryCompetitive intensity in mortgages may cap growth
Management acknowledged high competition in the mortgage segment, which could pose downside risk to the target of growing the book to 20%+.
medium · management_commentaryCredit card credit cost may remain elevated
Although absolute credit cost has peaked, credit card losses remain high and may persist through Q2 before normalizing in H2.
medium · analyst_question