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AU Small Finance BankNSE:AUBANK +1.61%82 Return-on-Tangible-Equity is 15.94% as of Jun. 2026, which is 7% above its 10-year median of 14.83. GuruFocus rates NSE:AUBANK with a GF Score™ of 82/100 and a GF Value™ of ₹1,050.86 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,522 Banks companies, AU Small Finance Bank ranks better than 76.22% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. AU Small Finance Bank's annualized net income for the quarter that ended in Jun. 2026 was ₹31,838 Mil. AU Small Finance Bank's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹199,735 Mil. Therefore, AU Small Finance Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 15.94%.
The historical rank and industry rank for AU Small Finance Bank's Return-on-Tangible-Equity or its related term are showing as below:
NSE:AUBANK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.04 Med: 14.83 Max: 55.05
Current: 15.45
During the past 13 years, AU Small Finance Bank's highest Return-on-Tangible-Equity was 55.05%. The lowest was 13.04%. And the median was 14.83%.
NSE:AUBANK's Return-on-Tangible-Equity is ranked better than 76.22% of 1522
companies
in the Banks industry
Industry Median: 11.375
vs NSE:AUBANK: 15.45
AU Small Finance Bank (NSE:AUBANK) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
AU Small Finance Bank Return-on-Tangible-Equity Related Terms
AU Small Finance Bank Return-on-Tangible-Equity Historical Data
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The historical data trend for AU Small Finance Bank's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AU Small Finance Bank Return-on-Tangible-Equity Chart
AU Small Finance Bank Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, AU Small Finance Bank's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AU Small Finance Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, AU Small Finance Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where AU Small Finance Bank's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.94% mean?
AU Small Finance Bank (NSE:AUBANK) has a Return-on-Tangible-Equity of 15.94% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AU Small Finance Bank and its competitors. This is near median its historical median of 14.83. Over the past decade, AU Small Finance Bank's Return-on-Tangible-Equity has ranged from 13.04 to 55.05. According to the industry distribution chart, AU Small Finance Bank ranks #362 out of 1522 companies in the Banks industry, placing it in the top 23.8%.
Is AU Small Finance Bank's Return-on-Tangible-Equity too high?
AU Small Finance Bank's current Return-on-Tangible-Equity of 15.94% is near median its 10-year median of 14.83. Over the past 10 years, this metric has ranged from a low of 13.04 to a high of 55.05. The Banks industry median Return-on-Tangible-Equity is 11.38. AU Small Finance Bank's value of 15.94% is 40.1% above this industry median. Based on the distribution chart, AU Small Finance Bank ranks #362 out of 1522 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, AU Small Finance Bank has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AU Small Finance Bank's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, AU Small Finance Bank ranks #362 out of 1522 companies for Return-on-Tangible-Equity. This places AU Small Finance Bank in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.38. AU Small Finance Bank's value of 15.94% is 40.1% above this benchmark. Historically, AU Small Finance Bank's own Return-on-Tangible-Equity has ranged from 13.04 to 55.05 over the past decade. While the company's 10-year median is 14.83 vs. the industry median of 11.38, AU Small Finance Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.38, based on 1,522 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AU Small Finance Bank's current Return-on-Tangible-Equity of 15.94% is 40.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on AU Small Finance Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AU Small Finance Bank's current Return-on-Tangible-Equity is 15.94%, which is near median its own 10-year median of 14.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AU Small Finance Bank stock overvalued right now?
Based on GuruFocus' analysis, AU Small Finance Bank (NSE:AUBANK) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,050.86, compared to a current price of ₹1,047.30 — trading 0.3% below its estimated fair value. The current Return-on-Tangible-Equity is 15.94%, which is near median its 10-year median of 14.83 and 40.1% above the Banks industry median of 11.38. AU Small Finance Bank's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For AU Small Finance Bank (NSE:AUBANK), the current Return-on-Tangible-Equity is 15.94% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AU Small Finance Bank (NSE:AUBANK) Overvalued in 2026?
Based on GuruFocus' analysis, AU Small Finance Bank stock appears to be undervalued.
The current stock price of ₹1,047.30 is trading 0.3% below its estimated GF Value™ of ₹1,050.86.
GuruFocus considers AU Small Finance Bank to be Fairly Valued.
Key valuation signals for NSE:AUBANK:
Return-on-Tangible-Equity: 15.94% (near median its 10-year median of 14.83)
GF Value™: ₹1,050.86 vs. price of ₹1,047.30 (0.3% below fair value)
Industry Position: 40.1% above the Banks median (#362 of 1522)
No single metric tells the full story. See the NSE:AUBANK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AU Small Finance Bank Ltd is engaged in the activities of providing financial services such as personal banking, insurance, retail loans and wholesale banking. The company operates in the business segment namely, Treasury; Retail banking; Wholesale banking; and Other banking operations. It generates maximum revenue from Retail banking segment. The retail banking segment serves retail customers through a branch network and other delivery channels. Revenues of the retail banking segment are derived from interest earned on retail loans, fees from services rendered, and others. Geographically, it operates only in India.
82GF Score
Get the complete analysis for NSE:AUBANK
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