The bank’s operating profit before provisions and contingencies stood at Rs 1,215.31 crore in Q3 FY26, registering a marginal growth of 0.86% YoY.

Net interest income (NII) rose 16% YoY to Rs 2,341 crore in Q3 FY26. Net interest margin (NIM) improved by 25 basis points quarter on quarter (QoQ) to 5.7%, compared with 5.5% in Q2 FY26.

The banks pre-provisioning operating profit (PPoP) grew 3% YoY to Rs 1,235 crore in Q3 FY26, compared with Rs 1,205 crore in Q3 FY25.

Total deposits grew 23.3% YoY and 4.5% QoQ to Rs 1,38,415 crore. The CASA ratio remained stable at around 29% as of December 2025, unchanged from September 2025.

CASA deposits increased 16% YoY, driven by a 31% growth in current account deposits to Rs 7,404 crore and a 13% rise in savings account deposits to Rs 32,543 crore.

The bank’s gross advances jumped 19.3% to Rs 1,25,209 crore in Q3 FY26, compared with Rs 1,00,988 crore in Q3 FY25.

On the asset quality front, gross non-performing assets (NPAs) stood at Rs 2,880.54 crore as on 31 December 2025, compared with Rs 2,335.51 crore as on 31 December 2024. Net NPAs were at Rs 1,091.46 crore, up from Rs 905.60 crore a year ago.

The gross NPA ratio stood at 2.30% as of 31 December 2025, marginally lower than 2.31% a year earlier, while the net NPA ratio improved to 0.88% from 0.91%.

The bank’s average liquidity coverage ratio (LCR) for the quarter stood at 118%, compared with 119% in Q2 FY26. Slippages declined 13% QoQ to Rs 791 crore from Rs 908 crore in the previous quarter.

During the quarter, AU SFB added a net 100 touchpoints, including 27 new liability branches, taking the total network to 2,726 touchpoints across 21 states and four Union Territories. The bank caters to over 12.5 million customers and has a workforce of more than 59,000 employees.

Sanjay Agarwal, Founder, MD & CEO, AU Small Finance Bank said, “Banking sector growth remained resilient this quarter, supported by GST rationalization and festive demand, even as the deposit environment stayed highly competitive. Against this backdrop, we delivered a strong and well rounded performance in Q3 across growth, margins, asset quality and profitability.

We further strengthened our governance by inducting three independent directors to the Board. At the same time, we are accelerating the integration of AI across our core operations and reimagining processes to transition to an AI native architecture—built for scale, resilience and inclusion. With our core growth engines firmly in place, and a once in a generation opportunity to evolve into a universal banking platform, we are well positioned to scale with purpose, responsibility and long term sustainability”.

Meanwhile, the board recommended the appointment of Phani Shankar as non-executive independent director (additional director) with effect from 20 January 2026 for a term of three years, subject to shareholder approval.

Uttam Tibrewal, Whole-Time Director and Deputy CEO, will complete his current term on 18 April 2026, marking nine years as a Whole-Time Director. In line with RBI’s Small Finance Bank Governance Directions, 2025, he will conclude his term but continue as Deputy CEO and Senior Management Personnel, leading key business verticals including retail assets and liabilities.

The board also approved the appointment of Vivek Tripathi, Chief Credit Officer, as Whole-Time Director (Executive Director) for a term of three years, subject to regulatory and shareholder approvals.

Additionally, Divya Sehgal, Non-Executive Non-Independent Director, resigned with effect from the close of business hours on 20 January 2026 following the completion of the Fincare SFB integration.

Further, Kannan Gopalaraghavan Vellur (V G Kannan), Independent Director, will complete his second term on 21 January 2026 and cease to be a director thereafter. The board placed on record its appreciation for his contributions.

AU Small Finance Bank is engaged in providing a range of banking and financial services, including retail banking, wholesale banking, treasury operations, and other services.

The counter slipped 1.16% to Rs 989.15 on the BSE.