AU Small Finance Bank Q2'FY26: Profit After Tax Grows 6% Y-o-Y, Loan Portfolio Grows 17% Y-o-Y, NIM Expands by 5 bps Q-o-Q

AU Small Finance Bank has reported a 6% growth in profit after tax in Q2 FY'26 compared to the same period last year. The bank's deposit book grew by 21% Y-o-Y, and the loan portfolio, excluding unsecured businesses, grew by 22% Y-o-Y. The unsecured portfolio, however, degrew by 23%. The net interest margin (NIM) expanded by 5 bps Q-o-Q to 5.5%. The cost of funds reduced by 25 bps during the quarter to 6.83%. The bank has been focusing on increasing granular savings account (SA) deposits and has cut the peak SA rate by 75 bps in this financial year. The bank has also been actively participating in credit guarantee schemes and interest subsidy programs to lower the risk exposure of lenders and reduce borrowing costs for targeted groups.