AU Small Finance Bank Ltd Q2 FY26 – ₹4,511 crore revenue, ₹561 crore profit, and RBI’s new favorite kid graduates to ‘Universal Bank’ school
1. At a Glance
Welcome to Jaipur’s most ambitious export after bandhani dupattas — AU Small Finance Bank Ltd, now marching toward universal-bank glory. Q2 FY26 revenue: ₹4,511 crore (+15 %), PAT: ₹561 crore (-1.8 %), NIM ≈ 6 %, ROE 14 %, GNPA 2.3 %, and a market-cap of ₹59,000 crore at ₹792 a share. P/E 27×, P/B 3.3×, dividend yield 0.13 %. It’s India’s largest SFB by far — a ₹1.08 lakh crore loan book and ₹1.32 lakh crore deposits, run by CEO Sanjay Agarwal, who went from used-car loans to RBI handshakes.
Every quarter looks the same: deposits up, margins steady, and one new fintech tie-up for ‘digital disruption’. Basically, the bank runs on NIMs, UPI, and Marwari confidence.
2. Introduction
Once upon a time in Rajasthan, a man with a calculator and a Bolero decided that NBFCs deserved bank licenses. Fast-forward 2025: AU SFB is the poster child of RBI’s “Small Banks Can Also Dream” campaign. After starting with wheel loans, the bank now does everything from mortgages to microfinance to luxury cards under its ‘AU Eternity’ program — because why not sell Mastercard rewards to people who still negotiate FD rates.
The last twelve months were wild: CFO passed away, RBI granted in-principle approval for universal-bank conversion, deposits grew 40 %, and Sanjay Agarwal got re-appointed till 2029. Somewhere in between, the bank launched a 24×7 video-banking booth so you can open accounts while binge-watching Shark Tank India.
But the question remains — can this ex-NBFC really become an HDFC Bank, or will it remain Rajasthan’s most glamorous cooperative society?
3. Business Model – WTF Do They Even Do?
They do everything except lose money.
Retail banking = 76 % of business, treasury 13 %, wholesale 9 %, others 2 %. The bank serves 1.1 crore customers through 2,400 touchpoints and 674 ATMs. Loan book ₹1.09 lakh crore split as:
Mortgage-backed 33 %
Wheels (Vehicle Finance) 32 %
Commercial Banking (SMEs) 21 %
Microfinance & Others 14 %
Deposits ₹1.32 lakh crore (Q3 FY25) with CASA 31 %, Term 65 %. Basically, half their borrowers drive Boleros, half own shops financed by those Boleros, and everyone parks their FDs back with AU — a closed-loop liquidity ecosystem.
Their fintech game is strong: AU0101 app = 33 lakh registered users, 16 lakh MAU. They’ve turned “digital” into a personality trait.
