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Competitive intensity in mortgages
View Risks →AU Small Finance Bank Limited — Q2 FY26
AU Small Finance Bank reported Q2 FY26 PAT of ₹561 crore, with NIM expanding 5 bps QoQ to 5.5% and credit cost declining to ₹481 crore.
bullish
high
Financial stats pending filing verification
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AU Small Finance Bank reported Q2 FY26 PAT of ₹561 crore, with NIM expanding 5 bps QoQ to 5.5% and credit cost declining to ₹481 crore. Core secured loan growth was 22% YoY, while unsecured book degrew 23% YoY. Deposits grew 21% YoY to ₹1.32 lakh crore, with cost of funds down 25 bps QoQ. Management highlighted the RBI's in-principle approval for universal banking as a key milestone, expecting tailwinds from festive demand, GST cuts, and declining credit costs. Guidance: full-year credit cost within 1% of average total assets, loan growth at 2-2.5x nominal GDP, and NIM improvement over next few quarters. Risk: competitive intensity in mortgages and potential slippage in unsecured recovery if macro weakens.
AU स्मॉल फाइनेंस बैंक ने दूसरी तिमाही में 561 करोड़ रुपये का मुनाफा कमाया। ब्याज आय और खर्च के बीच का अंतर (NIM) थोड़ा बढ़कर 5.5% हो गया। कर्ज देने में होने वाला नुकसान (क्रेडिट कॉस्ट) घटकर 481 करोड़ रुपये रह गया। सुरक्षित कर्ज (जैसे घर या गाड़ी पर लोन) पिछले साल से 22% बढ़ा, जबकि बिना सुरक्षा वाला कर्ज (जैसे पर्सनल लोन) 23% घटा। जमा राशि 21% बढ़कर 1.32 लाख करोड़ रुपये हो गई, और जमा पर ब्याज दर भी कम हुई। बैंक को RBI से यूनिवर्सल बैंक बनने की मंजूरी मिली, जो बड़ी उपलब्धि है। त्योहारी मांग और जीएसटी कटौती से फायदा होने की उम्मीद है। बैंक का अनुमान है कि पूरे साल कर्ज का नुकसान कुल संपत्ति के 1% से कम रहेगा, और कर्ज वृद्धि अर्थव्यवस्था से दोगुनी होगी।
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Read Transcript →Quarter Snapshot
Deposit Book
₹1.32 lakh crore
+21% YoY
Deposit base crossed ₹1.32 lakh crore, growing 21% YoY and 3.8% QoQ, reflecting strong branch banking franchise.
Core Secured Loan Growth
22% YoY
+22% YoY
Loan portfolio excluding unsecured businesses grew 22% YoY, led by wheels (26% YoY) and retail secured assets.
Cost of Funds
6.83%
-25 bps QoQ
Cost of funds reduced 25 bps QoQ from 7.08% to 6.83%, driven by deposit repricing and lower high-cost deposits.
MFI Collection Efficiency
98.95%
+improving QoQ
MFI collection efficiency improved to 98.95% in Q2, highest in five quarters, with SMA book down to 2.9%.
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Guidance and risk preview
Management expects full-year credit cost to be within 1% of average total assets, with H1 at 1.28% annualized and H2 benefiting from seasonal recov...
Management noted increased competition from small, localized, and niche players in every micro market, leading to cautious growth in mortgages.
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