# AU Small Finance Bank Q2FY27 Net Profit Rises 53% to ₹858 Crore as Deposits Grow 28.6%

> AU Small Finance Bank posted a 53% rise in standalone net profit to ₹858 crore for Q2FY27, with net interest income up 32% and deposits up 28.6%.

- Published: 2026-10-24T10:36:42+00:00
- Section: Earnings & Results
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-24/au-small-finance-bank-q2fy27-profit-jump
- Source: [ScanX](https://scanx.trade/stock-market-news/companies/au-small-finance-bank-q2fy27-results-net-profit-jumps-53-yoy-858-crore/54381568)

## Key takeaways

- AU Small Finance Bank reported standalone net profit of ₹858 crore for Q2FY27, up 53% from ₹561 crore a year earlier.
- Net interest income rose 32% to ₹2,820 crore and net interest margin expanded 33 bps to 5.8%.
- Deposits grew 28.6% to ₹1,70,460 crore, while gross NPAs improved to 1.99% from 2.41%.
- The Reserve Bank of India replaced the stipulation requiring promoter shares to be transferred to a Non-Operating Financial Holding Company.

[AU Small Finance Bank](https://akta.pro/company-profiles/005njk3/au-small-finance-bank) reported a 53% year-on-year increase in standalone net profit to ₹858 crore for the quarter ended September 30, 2026, up from ₹561 crore a year earlier. [ScanX](https://scanx.trade/stock-market-news/companies/au-small-finance-bank-q2fy27-results-net-profit-jumps-53-yoy-858-crore/54381568) published the results on October 24, 2026.

## AU Small Finance Bank's Q2FY27 Profit and Margin Gains

Net interest income rose 32% to ₹2,820 crore, and net interest margin expanded 33 basis points to 5.8%. Total income increased to ₹6,382 crore from ₹5,224 crore, while operating expenses rose to ₹2,077 crore from ₹1,647 crore. Core pre-provisioning operating profit grew 31% to ₹1,480 crore.

Deposits grew 28.6% to ₹1,70,460 crore, and the gross loan portfolio rose 25.1% to ₹1,53,769 crore. Gross NPAs improved to 1.99% from 2.41%, and annualised credit cost fell to 0.8% from 1.2%. Provisions for non-performing and standard assets dropped to ₹359 crore from ₹481 crore.

The bank disclosed progress on its transition to a Universal Bank. The [Reserve Bank of India](https://akta.pro/company-profiles/0002r7w/reserve-bank-of-india) granted in-principle approval on August 7, 2025, and later replaced the stipulation requiring promoter shares to be transferred to a Non-Operating Financial Holding Company. That requirement now applies only if the bank or its promoters establish group entities in the future. The final license remains subject to regulatory assessment.

## AU Small Finance Bank's Balance Sheet Scale

According to akta.pro [company records](https://akta.pro/company-data), AU Small Finance Bank scaled its balance sheet to Rs. 1,91,797 Cr as of March 31, 2026, up 22% year on year, with total deposits of Rs. 1,52,661 Cr, up 23%. The bank served more than 1.22 crore live customers as of March 2026. It received RBI in-principle approval in June 2025 to transition from a Small Finance Bank to a Universal Bank.

## Credit Card and Deposit Moves Before the Results

Paytm and AU Small Finance Bank launched a co-branded RuPay credit card with no joining or annual fee, offering up to 5% rewards on Paytm Travel and Gold purchases and up to 12 complimentary family airport lounge visits per year, CNBC TV18 reported in October 2026. The bank raised its peak interest rate on FCNR(B) deposits to 7.40% per annum for the 3-4 year tenure and on NRE fixed deposits to 7.60% per annum for the 36 months 1 day to 45 months tenure, effective July 27, 2026, GulfNews reported.

## AU Small Finance Bank's Universal Bank License Next Step

The final Universal Bank license remains subject to regulatory assessment, the bank said.

## Companies in this story

- [AU Small Finance Bank company profile](https://akta.pro/company-profiles/005njk3/au-small-finance-bank) · website: https://au.bank.in
- [Reserve Bank of India company profile](https://akta.pro/company-profiles/0002r7w/reserve-bank-of-india) · website: http://rbi.org.in

---
News for Agent · https://newsforagent.com/llms.txt