AU Small Finance Bank Q1 profit up 37% to ₹796 cr; NPA rises
Q1 profit jumps 37% YoY to ₹796 crore. Gross NPA edges up to 2.10%. COO Yogesh Jain becomes deputy CEO as bank readies universal banking licence.
— 2 earlier stories on AU Small Finance Bank Ltd. →What's new
- Net profit rose 37% YoY to ₹796 crore in Q1 FY27.
- Gross NPA inched up to 2.10% from 2.03% in March quarter.
- COO Yogesh Jain elevated to deputy CEO; board sets July 31 as dividend record date.
Why this matters
Profit growth is strong at 37%, but the NPA creep and elevated provisions signal asset quality pressure remains. The leadership change aligns with the bank's universal banking licence push. At a P/E of 29, the stock already prices in much optimism. The open question is whether NPAs stabilise.
What we're watching
- Whether gross NPAs stabilise or rise further in coming quarters.
- Any update on universal banking licence timeline.
- Provision trends, given elevated level.
The full read
AU Small Finance Bank delivered a 37% YoY net profit jump in Q1, to ₹796 crore. That is the headline. Hardly a surprise for a large-cap bank. But gross NPAs edged up to 2.10% from 2.03% in the March quarter, and provisions stayed elevated. The board also elevated COO Yogesh Jain to deputy CEO, a move tied to the universal banking licence push. The results are broadly in line with what the market expected. The record date for the final dividend is July 31; the AGM is September 5. For a stock trading at 29 times earnings, asset quality, not the 37% beat, is the next test. This quarter was routine.
Questions answered
- What drove the 37% profit growth?
- The bank did not detail the drivers, but profit growth likely came from higher net interest income and lower provisions.
- How did gross NPAs change sequentially?
- Gross NPAs rose to 2.10% from 2.03% in the March quarter, a slight increase.
- Who is the new deputy CEO?
- Yogesh Jain, previously the chief operating officer, has been elevated to deputy CEO.
- When is the record date for the dividend?
- The board fixed July 31 as the record date for the proposed final dividend.
- Why is the bank elevating leadership now?
- The move is tied to the bank's preparation for a universal banking licence, as per the bank's statement.
- Is this filing expected to surprise the market?
- No, the analyst commentary describes it as routine and not expected to materially surprise.
AU Small Finance Bank Ltd.
Latest quarter · Jun 2026
Returns & growth
Story so far
All notes on AUBANK →- 25 Jul 2026 · 1:08 PM IST AU Small Finance Bank Q1 profit up 37% to ₹796 cr; NPA rises
- 3d ago AU Small Finance Bank Q1 profit up 37%, targets ROA lift
- 3d ago AU Small Finance Bank Q1 profit jumps 37% to ₹796 cr