AU Small Finance Bank Q1 2026: deposits 23.5%, loans 22.6%

What AU Small Finance Bank reported in its June-quarter update

AU Small Finance Bank on Friday, July 3, released a provisional business update for the quarter ended June 30, 2026, detailing growth in deposits and its loan portfolio. The Jaipur-headquartered lender said total deposits increased 23.5% year-on-year (YoY), while its gross loan portfolio rose 22.6% YoY. The update also provided sequential movement versus the March quarter, offering a quick view of how momentum looked heading into the new quarter.

The bank clarified that the figures for the June quarter are provisional and remain subject to review by its audit committee, board of directors, and statutory auditors. Such business updates typically focus on balance-sheet traction rather than profitability and do not include detailed income statement disclosures. Still, deposit and loan trends matter for investors tracking growth, funding mix, and the broad direction of the franchise.

Total deposits: year-on-year growth and sequential pickup

Total deposits stood at ₹1,57,730 crore as of June 30, 2026. This compares with ₹1,27,696 crore a year earlier, translating to 23.5% YoY growth. Against the March quarter, deposits rose from ₹1,52,661 crore, a sequential increase of 3.3%.

The sequential improvement is a key data point because it shows how the deposit base moved within the year, not just versus a low or high base. Investors also use this to track whether growth is accelerating or moderating through quarters. Deposit growth can influence funding costs and the ability to expand the loan book without depending excessively on bulk sources.

CASA deposits: growth in the low-cost funding base

CASA deposits increased to ₹45,400 crore as of June 30, 2026. This was up 21.9% YoY from ₹37,241 crore in the year-ago period. On a sequential basis, CASA rose 4.7% from ₹43,357 crore in the preceding quarter.

CASA is closely watched because it represents low-cost deposits and can support margins when pricing in assets becomes competitive. The update did not provide CASA ratio details, but the absolute growth and the sequential pickup indicate continued traction in this funding bucket during the quarter.

Gross advances: faster year-on-year growth and steady sequential expansion

Gross advances climbed to ₹1,40,460 crore as of June 30, 2026. This compares with ₹1,11,614 crore a year earlier, implying 25.8% YoY growth. Sequentially, gross advances rose 3.2% from ₹1,36,041 crore at the end of March.

This growth rate in advances is higher than the YoY deposit growth reported in the same update. While the update does not discuss mix, credit demand, or pricing, the data shows that the bank’s loan book continued to expand both YoY and quarter-on-quarter.

Securitised, assigned portfolio and IBPC book: lower than last year

The securitised, assigned portfolio and inter-bank participation certificates (IBPC) book stood at ₹3,790 crore as of June 30, 2026. This was lower than ₹6,010 crore a year earlier and also below ₹4,286 crore at the end of March.

This component is relevant because it affects the bank’s broader credit exposure when included with the on-balance-sheet loan book. The decline versus both the year-ago period and the March quarter suggests a smaller contribution from securitisation, assignment, and IBPC activity at the end of June.

Gross loan portfolio (including securitised/assigned and IBPC): 22.6% YoY rise

AU Small Finance Bank reported that its gross loan portfolio, including the securitised, assigned portfolio and IBPC book, rose 22.6% YoY to ₹1,44,250 crore. It was ₹1,17,624 crore in the year-ago period. On a sequential basis, the portfolio grew 2.8% from ₹1,40,327 crore.

This “including” view matters because it presents the broader credit footprint alongside the bank’s on-book advances. In this update, the inclusion increases the reported portfolio size compared with gross advances, reflecting off-balance sheet or participation elements captured in the definition.

Stock reaction: shares end flat, gains remain positive over 12 months

Shares of AU Small Finance Bank ended flat at ₹1,057.10 ahead of the business update on Friday. The stock has gained nearly 6% so far this year and about 29% over the last 12 months, as per the information cited alongside the update.

Price movement around business updates can be muted when numbers track expectations or when investors wait for full financial results and management commentary. The update itself did not provide guidance, margin commentary, or asset quality indicators for the quarter ended June 30, 2026.

How this update sits alongside the bank’s earlier reported Q1 performance (June 30, 2025)

Separately, the provided context also includes the bank’s reported Q1 results for the quarter ended June 30, 2025, where it reported a 16% YoY increase in net profit to ₹581 crore from ₹503 crore. Total income in that quarter rose to ₹5,189 crore from ₹4,278 crore a year earlier, while interest earned increased to ₹4,378 crore from ₹3,769 crore. Net interest income (NII) was reported at ₹2,045 crore versus ₹1,921 crore.

That quarter also showed asset quality deterioration, with gross NPAs at 2.47% of gross advances as of June 30, 2025, compared with 1.78% a year earlier. Net NPAs rose to 0.88% from 0.63%. Provisions and contingencies increased to ₹533 crore from ₹283 crore, and the Provision Coverage Ratio (PCR) was reported at 83% at the end of that June quarter.

Key numbers at a glance

What investors typically watch after a provisional update

The bank has stated the numbers are provisional and will be reviewed by the audit committee, the board, and statutory auditors. For investors, the next layer of detail usually comes from financial results and accompanying disclosures, where asset quality, margins, operating costs, and segment-level trends become clearer.

The context also references an investor and analyst conference call scheduled for Monday, April 27, 2026 at 6:00 pm IST, where the board was to consider and approve the financial results for the quarter and year ended March 31, 2026. For the June-quarter update released on July 3, markets will typically look for the next set of results and commentary to reconcile balance-sheet growth with profitability, credit costs, and risk indicators.

Conclusion

AU Small Finance Bank’s provisional update for the quarter ended June 30, 2026 showed continued expansion in deposits, CASA, and the overall loan portfolio, with modest sequential growth versus the March quarter. The bank has flagged that the numbers are subject to internal and statutory review. Investors are likely to track the upcoming detailed results disclosures for clarity on margins, asset quality, and how credit costs evolve alongside the reported balance-sheet growth.