Deposit Growth (YoY)
23%
+23% YoY
Deposits grew 23% YoY vs estimated private sector banking growth of 13%.
AUSMALLFINANCEBANK
Financial Services
28 Apr 2026
AU Small Finance Bank Ltd — Q4 FY26
AU Small Finance Bank delivered a strong Q4 FY26 with PAT of ₹832 crore (+65% YoY) and ROA of 1.8%, driven by margin expansion (+24bps QoQ to 5.96%), lower credit costs (0.6%), and robust deposit growth (+23% YoY).
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
AU Small Finance Bank delivered a strong Q4 FY26 with PAT of ₹832 crore (+65% YoY) and ROA of 1.8%, driven by margin expansion (+24bps QoQ to 5.96%), lower credit costs (0.6%), and robust deposit growth (+23% YoY). Loan book grew 21% YoY led by secured assets (wheels +27%, gold loan doubled). Asset quality improved with GNPA down 27bps to 2.03%. Management guided for FY27 credit cost around 90bps and cost-to-assets below 4%, while targeting sustainable compounding at 2-2.5x nominal GDP growth. Key risk: margin pressure from seasonal Q4 benefits reversing and cost of funds potentially bottoming out.
Key Numbers
Loan Growth (YoY)
21%
+21% YoY
Loan portfolio grew 21% YoY, with secured assets growing 23% YoY.
CASA Ratio
28%
Flat YoY
CASA ratio stable at 28% despite strong deposit growth.
Cost of Funds (FY26)
6.75%
-32bps YoY
Full-year cost of funds declined 32bps to 6.75% from 7.07% in FY25.
Management Guidance
Credit cost around 90bps for FY27
Management guided to build credit cost around 90bps for next year, with potential savings from normalization in MFI and credit card portfolios.
Management guidance marginsCost-to-assets below 4% in FY27
Management expects cost-to-assets (ex-CGFMU) to decline below 4% in the current financial year, from 4.1% in FY26.
Management guidance marginsSustainably compound at 2-2.5x nominal GDP growth
The bank aims to grow at 2 to 2.5 times India's nominal GDP growth rate over the long term.
Management guidance growthTarget cost of funds around repo rate long-term
Management's long-term aspiration is to bring cost of funds to around the prevailing repo rate, currently 5.25%.
Management guidance otherKey Risks
Margin pressure from seasonal Q4 benefits reversing
Q4 margins benefited from lower day count and lower slippages; these are unlikely to recur in Q1, potentially compressing NIMs.
medium · management_commentaryCost of funds may have bottomed out
Management noted that with recent rate increases, cost of funds may have bottomed, limiting further margin expansion.
medium · management_commentaryECL guidelines impact on credit cost post universal bank transition
Analyst raised concern about new ECL norms; management deferred guidance, stating it's too early to comment, indicating potential uncertainty.
medium · analyst_questionGeopolitical tensions and second-order effects
Management acknowledged risks from West Asia tensions on fuel prices, inflation, and consumption, though direct exposure is limited.
low · management_commentaryNotable Quotes
We are inducting AI in our core operating model which can lead to a complete reimagination of our customer journeys and provide a sustainable operating leverage over the coming years.
I would advise anybody that you should actually build this quarter credit cost as an overall cost for next year... you should build it around 90 pips or maybe in that range.
Our focus will remain on building a very stable liability franchise... we are not playing a profit game; we need to build it somehow somewhere.
Frequently Asked Questions
What was AU Small Finance's revenue in Q4 FY26?
AU Small Finance reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did AU Small Finance management give for FY27?
Credit cost around 90bps for FY27: Management guided to build credit cost around 90bps for next year, with potential savings from normalization in MFI and credit card portfolios. Cost-to-assets below 4% in FY27: Management expects cost-to-assets (ex-CGFMU) to decline below 4% in the current financial year, from 4.1% in FY26. Sustainably compound at 2-2.5x nominal GDP growth: The bank aims to grow at 2 to 2.5 times India's nominal GDP growth rate over the long term. Target cost of funds around repo rate long-term: Management's long-term aspiration is to bring cost of funds to around the prevailing repo rate, currently 5.25%.
What are the key risks for AU Small Finance in FY27?
Key risks include Margin pressure from seasonal Q4 benefits reversing — Q4 margins benefited from lower day count and lower slippages; these are unlikely to recur in Q1, potentially compressing NIMs.; Cost of funds may have bottomed out — Management noted that with recent rate increases, cost of funds may have bottomed, limiting further margin expansion.; ECL guidelines impact on credit cost post universal bank transition — Analyst raised concern about new ECL norms; management deferred guidance, stating it's too early to comment, indicating potential uncertainty.; Geopolitical tensions and second-order effects — Management acknowledged risks from West Asia tensions on fuel prices, inflation, and consumption, though direct exposure is limited..
Did AU Small Finance meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full AU Small Finance Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.