AU Small Finance Bank Q1 FY26 Business Update: Deposits Surge 31.3% YoY, Advances Up 23.1%
By Shishta Dutta | Updated at: Oct 13, 2025 05:35 PM IST
Jaipur, July 4, 2025: AU Small Finance Bank Ltd (NSE: AUBANK | BSE: 540611) has announced a robust business performance for the quarter ended June 30, 2025 (Q1 FY26), as per its provisional data submitted to the exchanges. The bank demonstrated healthy year-on-year growth in both deposits and advances, signalling continued expansion.
Q1 FY26 Provisional Key Highlights
The provisional data for Q1 FY26 shows significant growth across key financial metrics:
| Particulars (₹ in crore) | Q1 FY26 (Jun ’25) | Q1 FY25 (Jun ’24) | YoY Growth | Q4 FY25 (Mar’25) | QoQ Growth |
|---|---|---|---|---|---|
| Total Deposits | 1,27,700 | 97,290 | 31.3% | 1,24,269 | 2.8% |
| CASA Deposits | 37,240 | 32,035 | 16.2% | 36,253 | 2.7% |
| CASA Ratio | 29.2% | 32.9% | N.A. | 29.2% | N.A. |
| Gross Advances (A) | 1,11,620 | 90,702 | 23.1% | 1,08,778 | 2.6% |
| Securitised/Assigned Portfolio + IBPC (B) | 6,010 | 9,089 | N.A. | 6,926 | N.A. |
| Gross Loan Portfolio (A+B) | 1,17,630 | 99,792 | 17.9% | 1,15,704 | 1.7% |
Financial Analysis
Total Deposits surged by an impressive 31.3% year-on-year to ₹1,27,700 crore in Q1 FY26, and also saw a sequential growth of 2.8% from Q4 FY25. Gross Advances also showed strong growth, increasing by 23.1% year-on-year to ₹1,11,620 crore, with a quarter-on-quarter growth of 2.6%. The overall Gross Loan Portfolio grew by 17.9% year-on-year to ₹1,17,630 crore.
However, the CASA (Current Account Savings Account) ratio remained steady at 29.2% on a sequential basis but reflected a decline from 32.9% in the year-ago period. This indicates that while total deposits grew significantly, the growth in CASA deposits (16.2% YoY) was relatively slower, leading to a slight moderation in the CASA mix within the overall deposit base. The decline in the CASA ratio could be attributed to increased competition for deposits and possibly a shift towards higher-cost term deposits.
Management & Regulatory Note
This data has been released ahead of the audited financial results for Q1 FY26 and is subject to review by the Audit Committee, Board of Directors, and Statutory Auditors. The disclosure complies with Regulation 8 of the SEBI (Prohibition of Insider Trading) Regulations, 2015, and relevant provisions of the SEBI (LODR) Regulations, 2015.
Share Price Recap
On July 3, the shares of AU Small Finance Bank closed at ₹811.85, down by 0.78% or ₹6.40. They made an intraday high of ₹822.10 and a low of ₹809.55. It remains to be seen at what price they open today and how they perform throughout the market session.
Future Outlook for AU
AU Small Finance bank’s Q1 FY26 business update paints a picture of strong growth, with deposits up 31.3% YoY and advances rising 23.1%, indicating robust expansion in core operations. The CASA ratio dipped to 29.2% from 32.9% YoY, reflecting rising competition for low-cost deposits, although the absolute CASA deposits still grew 16.2%. The slight sequential growth across metrics (2–3%) suggests steady momentum entering FY26.
Going forward, AU is expected to focus on improving its deposit mix, boosting CASA mobilisation, and maintaining credit growth quality. Investors will closely watch the bank’s July earnings release for details on margins, asset quality, and cost trends, which will provide deeper insight into its financial health and sustainability of growth.
Company Overview
AU Small Finance Bank Limited is a listed scheduled commercial bank headquartered in Jaipur, Rajasthan. It was formerly known as AU Financiers (India) Ltd. The bank operates under the regulatory framework of the Reserve Bank of India and is listed on both NSE and BSE. It offers a full spectrum of banking products including retail, MSME, and wholesale banking services across India.
For more details, visit: www.aubank.in/investors
REF: https://nsearchives.nseindia.com/corporate/AUBANK_03072025230430_Provisional_release_Q1_FY26.pdf
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