Q1 2026 AU Small Finance Bank Ltd Earnings Call Transcript

Jul 19, 2025 / 01:30 PM GMT

Transcript

Key Points

Positve

AU Small Finance Bank Ltd (NSE:AUBANK) reported a strong growth in its deposit book, which increased by 31% year-on-year, significantly outpacing the system growth rate.
The bank's loan portfolio grew by 18% year-on-year, driven by core secured segments such as retail secured assets and commercial banking assets.
The wheels segment, a key product within retail secured assets, showed robust growth with a 26% year-on-year increase in its gross loan portfolio.
The bank maintained a healthy liquidity position with an average Liquidity Coverage Ratio (LCR) of 123%, up 7% from the previous quarter.
AU Small Finance Bank Ltd (NSE:AUBANK) achieved a profit after tax of INR 581 crores, marking a 16% increase from the previous year.

Negative

The bank experienced elevated credit costs, particularly in its unsecured segments, leading to a revision in its full-year credit cost expectations.
There was a decline in net interest margin by 38 basis points, attributed to a reduction in asset yield and investment yield.
The unsecured microfinance book faced challenges with asset quality and book de-growth, impacting the bank's overall performance.
The bank's mortgage portfolio in the southern region showed signs of stress, with higher credit costs due to deterioration in asset quality.
The credit card and personal loans business experienced elevated credit costs, with the bank acknowledging a peak in absolute terms this quarter.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

AUFI.NS - AU Small Finance Bank Ltd
Q1 2026 AU Small Finance Bank Ltd Earnings Call
Jul 19, 2025 / 01:30PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to the AU Small Finance Bank Q1 FY26 earnings conference call.

As a reminder, all participant clients will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during this conference, please signal an operator by pressing and then 0 on your touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Mr. Prince Dewari, head of investor relations.

Thank you and over to you, Mr. Tiwari.

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Unidentified_2 [2]

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